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? Continue reading...