How to setup pnpify --sdk vscode for typescript when project folder is not the top folder in vscode

[ZYinMD]

• I'd be willing to implement a fix

Describe the bug
My yarn pnp codebase is a subfolder when opened in vscode:

repo
  |--.git
  |--documentations
  |--server-code
  |--react-typescript-pnp
  |     |----.yarn
  |     |----yarn.lock

I can't find a way to set up the vscode TS server so it doesn't show red squiggles. I've tried many different things, none worked.

If I open the react folder as the top folder in vscode, the squiggles disappear.

What's the recommended solution here? Thanks!

Additional context
I'm not using yarn workspaces, nor vscode workspaces.

Screenshots

Environment if relevant (please complete the following information):

• OS: win10
• Node version 14.15.5
• Yarn version 2.4.2