VSCode is not showing yellow squiggles in the code, but warnings are shown in the terminal.

macOS version : macOS Sonoma version 14.5

Visual Studio Code:

Version: 1.86.2 (Universal)
Commit: 903b1e9d8990623e3d7da1df3d33db3e42d80eda
Date: 2024-02-13T19:42:13.651Z
Electron: 27.2.3
ElectronBuildId: 26908389
Chromium: 118.0.5993.159
Node.js: 18.17.1
V8: 11.8.172.18-electron.0
OS: Darwin x64 23.5.0

Tried modifying user settings, and .eslintrc.cjs but nothing seems to work

Code with no yellow underline

My issue is similar to the one below, but the fixes suggested did not really work

https://github.com/microsoft/vscode/issues/116305#issuecomment-780099359