diff --git a/template/app/src/vite-env.d.ts b/template/app/src/vite-env.d.ts
index 11f02fe2a..0a1f512ed 100644
--- a/template/app/src/vite-env.d.ts
+++ b/template/app/src/vite-env.d.ts
@@ -1 +1,7 @@
 /// <reference types="vite/client" />
+
+// This is needed to properly support Vitest testing with jest-dom matchers.
+// Types for jest-dom are not recognized automatically and Typescript complains
+// about missing types e.g. when using `toBeInTheDocument` and other matchers.
+// Reference: https://github.com/testing-library/jest-dom/issues/546#issuecomment-1889884843
+import '@testing-library/jest-dom';
diff --git a/template/app/tsconfig.json b/template/app/tsconfig.json
index a62a4ce90..ac792df14 100644
--- a/template/app/tsconfig.json
+++ b/template/app/tsconfig.json
@@ -11,32 +11,24 @@
 {
   "compilerOptions": {
     "module": "esnext",
-    // Needed because this is used as a project reference.
     "composite": true,
     "target": "esnext",
-    // We're bundling all code in the end so this is the most appropriate option,
-    // it's also important for autocomplete to work properly.
     "moduleResolution": "bundler",
-    // JSX support
     "jsx": "preserve",
     "strict": true,
-    // Allow default imports.
     "esModuleInterop": true,
-    "lib": ["dom", "dom.iterable", "esnext"],
+    "isolatedModules": true,
+    "moduleDetection": "force",
+    "lib": [
+      "dom",
+      "dom.iterable",
+      "esnext"
+    ],
     "skipLibCheck": true,
     "allowJs": true,
-    "typeRoots": [
-      // This is needed to properly support Vitest testing with jest-dom matchers.
-      // Types for jest-dom are not recognized automatically and Typescript complains
-      // about missing types e.g. when using `toBeInTheDocument` and other matchers.
-      "node_modules/@testing-library",
-      // Specifying type roots overrides the default behavior of looking at the
-      // node_modules/@types folder so we had to list it explicitly.
-      // Source 1: https://www.typescriptlang.org/tsconfig#typeRoots
-      // Source 2: https://github.com/testing-library/jest-dom/issues/546#issuecomment-1889884843
-      "node_modules/@types"
-    ],
     "outDir": ".wasp/out/user"
   },
-  "include": ["src"]
+  "include": [
+    "src"
+  ]
 }