How to set features for different crates in a workspace?

I have a workspace with 2 crates.

1. A library that has various features like std which I can turn off for no_std, and also by default a rand feature that includes the rand crate.
2. A WASM binary that targets wasm32-unknown-unknown. This depends on crate 1 with default-features = false (to allow no_std)

The WASM binary replaces the #[panic_handler] and cargo check and cargo build throw no errors.

However, rust-analyzer gives me an error on the panic handler:

found duplicate lang item `panic_impl`
the lang item is first defined in crate `std` (which `test` depends on)
first definition in `std` loaded from /home/jonathan/.rustup/toolchains/1.74.0-x86_64-unknown-linux-gnu/lib/rustlib/wasm32-unknown-unknown/lib/libstd-3354d2cb1f357486.rlib
second definition in the local crate

Here's the repo: https://github.com/bitcoinjs/tiny-secp256k1/tree/wip/modular (note: the wip/modular branch)
(I've committed the .cargo folder and .vscode folder)

Check out the linked wip/modular branch and inspect its .cargo and .vscode configuration alongside the two-crate workspace. First compare rust-analyzer's duplicate panic_impl diagnostic with the successful cargo check and cargo build results for wasm32-unknown-unknown. Done means rust-analyzer resolves the workspace features consistently and no longer reports the false duplicate panic handler.