Typescript errors when using `npx frontity create --typescript`

I am starting yet another project, and this time we want to use TS. We decided to use the mars-typescript-theme as a start to save us some time.

So after I run npx frontity create --typescript everything seems to work properly, but then I am getting ts warning/error in the frontity.settings.ts file.

I am very new to TS so I am really struggling to figure out what is going on.

Here are some screenshots of what i see in VSC:

For testing purposes I also made a new sandbox from that repository, and weird enough there i dont get this warnings.

Could this be an issue with my VSC? I am really confused.
Hopefully someone can help with this.