parser error cannot read tsconfig.json only in vscode eslint extension - visual-studio-code

Question

I am using eslint extension in vscode and it is always showing me the parser error which says that it cannot read tsconfig.json but when I run in the bash the command "eslint --ext .ts ." then it does not show there is any problem but only in the vscode eslint extension it's showing that problem.
Also, I noticed that it is not complaining about missing semicolons.
tsconfig.json
{
"compilerOptions": {
"target": "ES6",
"module": "commonjs",
"resolveJsonModule": true,
"outDir": "./build/",
"esModuleInterop": true,
"strict": true,
"noUnusedLocals": true,
"noUnusedParameters": true,
"noImplicitReturns": true,
"noFallthroughCasesInSwitch": true,
"skipLibCheck": true
}
}
.eslintrc
{
"extends": [
"eslint:recommended",
"plugin:#typescript-eslint/recommended",
"plugin:#typescript-eslint/recommended-requiring-type-checking"
],
"plugins": [
"#typescript-eslint"
],
"env": {
"browser": true,
"es6": true,
"node": true
},
"rules": {
"#typescript-eslint/semi": [
"error"
],
"#typescript-eslint/explicit-function-return-type": "off",
"#typescript-eslint/explicit-module-boundary-types": "off",
"#typescript-eslint/restrict-template-expressions": "off",
"#typescript-eslint/restrict-plus-operands": "off",
"#typescript-eslint/no-unsafe-member-access": "off",
"#typescript-eslint/no-unused-vars": [
"error",
{
"argsIgnorePattern": "^_"
}
],
"no-case-declarations": "off"
},
"parser": "#typescript-eslint/parser",
"parserOptions": {
"project": "./tsconfig.json"
}
}