Thousands of false positives that seem to crash the TypeScript extension

Does this issue occur when all extensions are disabled?: Yes (it's a built-in extension)

Version: 1.93.1 (Universal)
Commit: 38c31bc77e0dd6ae88a4e9cc93428cc27a56ba40
Date: 2024-09-11T17:20:05.685Z
Electron: 30.4.0
ElectronBuildId: 10073054
Chromium: 124.0.6367.243
Node.js: 20.15.1
V8: 12.4.254.20-electron.0
OS: Darwin x64 22.6.0

Steps to Reproduce:

1. This is happening in our OS repo: https://github.com/Khan/perseus
2. git clone https://github.com/Khan/perseus.git and yarn install
3. Note there are no TS errors
4. Open grapher.cypress.ts
5. Note there are thousands of TS errors, even outside of the opened file
6. Run yarn tsc and note there aren't any real TS errors

https://github.com/user-attachments/assets/5bc851d0-b451-45bf-99d9-5e65d76ea77c