You then have to tell VS Code the install location using the
typescript.tsdk setting. Set
typescript.tsdk to the path of the
lib folder containing the
tsserver.js file of the installed TypeScript module.
I had done a global install. And since hidden files and the usr/ folder are also a mystery to me, it took me a while to figure out that this is how to specify that in the settings.json file in VSCode.
I hope someone can save some time by finding this blog post.