I am not sure where exactly the issue is, however just by elimination I think it is VS Code and not Nx, Typescript or Angular, as I have only restarted VSC and it updated itself to the newer version which then brought up the issue at hand.

I have a standard Nx setup with 3 libraries and 3 apps (Angular/Typescript).

- apps
  |- app1
  |- app2
  |- app3
- libs
  |- lib1
  |- lib2
  |- lib3
tsconfig.base.json

The (short) paths to the libs are defined in this tsconfig.base.json file

{
    "compileOnSave": false,
    "compilerOptions": {
        "rootDir": ".",
        "sourceMap": true,
        "declaration": false,
        "moduleResolution": "node",
        "emitDecoratorMetadata": true,
        "experimentalDecorators": true,
        "importHelpers": true,
        "target": "es6",
        "module": "esnext",
        "typeRoots": ["node_modules/@types"],
        "lib": ["es2019", "dom"],
        "skipLibCheck": true,
        "skipDefaultLibCheck": true,
        "baseUrl": ".",
        "paths": {
            "@ultim/lib1": ["libs/ultim-lib1/src/index.ts"], // <- HERE
            "@ultim/lib2": ["libs/ultim-lib2/src/index.ts"],
            "@ultim/lib3": ["libs/ultim-lib3/src/index.ts"]
        }
    },
    "angularCompilerOptions": {
        "strictTemplates": true
    },
    "exclude": ["node_modules", "tmp"]
}

It has been working all right since the initial setup.
After the update VS Code now underlines these three paths in the imports statements as “couldn’t find”. The app compiles alright – but VSC is complaining?
When adding a new import from one of the libraries, it resolves the path as relative to the component and that involves a lot of .../ instead of expected @ulitm/lib1

All the solutions and half hacks I’ve seen until now seem to not apply to my case. Has anybody got the same issue/setup or maybe has an idea for a solution?

Edit: Switching (downgrading) to Typescript 4.9.5 from 5.7.2 in VSC resolved the issue. why?!