Edge Tools for VS Code in Windows cannot resolve extends in tsconfig.json

Environment (please complete the following information):

Version: 1.66.0 (user setup)
Commit: e18005f0f1b33c29e81d732535d8c0e47cafb0b5
Date: 2022-03-30T05:50:14.623Z
Electron: 17.2.0
Chromium: 98.0.4758.109
Node.js: 16.13.0
V8: 9.8.177.11-electron.0
OS: Windows_NT x64 10.0.22581

Edge Tools: v1.4.6

VS Code is running on Windows without WSL.

Describe the bug:

Edge Tools reported an error that it cannot find the target file in extends field of tsconfig.json. It seems that it cannot resolve the node_modules directory properly.

The error is gone if Microsoft Edge Tools extension is disabled.

Repro steps:

1. Clone this repository: https://github.com/tkesgar/vscode-tsconfig-extends-error-example
2. Open in VS Code with extension enabled
3. View tsconfig.json

Expected behavior:

No error is reported, since it is the recommended practice from https://github.com/tsconfig/bases#available-tsconfigs.

Additional context:

The error does not appear if I open VS Code in WSL.

Workaround:

• Run VS Code under WSL in Windows
• Disable the plugin

Clone tkesgar/vscode-tsconfig-extends-error-example, open it in VS Code on Windows with Edge Tools v1.4.6 enabled, and inspect tsconfig.json while comparing behavior with the extension disabled or under WSL. Trace how the extension resolves the tsconfig.json extends target and verify that the recommended node_modules-based configuration no longer reports an error on Windows.