Lesson 7: Import issue: Source "@openzeppelin/contracts/access/Ownable.sol" not found: File import callback not supported

I am running into an issue in Lesson 7 when importing Ownable.sol from OpenZeppelin. It seems to be the same issue as described and resolved in the topic #133 but none of the fixes have worked for me.

The error I get: Source "@openzeppelin/contracts/access/Ownable.sol" not found: File import callback not supported

I have:

copied and pasted the original code for imports and brownie-config.yaml
looked through the repo and tried switching versions
looked through the repo and tried switching folders
went letter by letter through my files and also checked indents
restarted VSC

(the price feed import from chainlink is working fine)

What other options do I have to debug this import issue?

My Lottery.sol file: (only the imports and skipping the rest)

// SPDX-License-Identifier: MIT

pragma solidity ^0.6.6;

import "@chainlink/contracts/src/v0.6/interfaces/AggregatorV3Interface.sol";
import "@openzeppelin/contracts/access/Ownable.sol";

contract Lottery is Ownable {}

My brownie-config.yaml file: (only the dependencies)

dependencies:
  - smartcontractkit/chainlink-brownie-contracts@0.4.2
  - OpenZeppelin/openzeppelin-contracts@3.4.0
compiler:
  solc:
    remappings:
      - '@chainlink=smartcontractkit/chainlink-brownie-contracts@0.4.2'
      - '@openzeppelin=OpenZeppelin/openzeppelin-contracts@3.4.0'

EDIT: The file compiles when running brownie compile but still shows the error in the editor.

The terminal log after running compile: (skipping massive list of downloads)

Brownie v1.19.2 - Python development framework for Ethereum

1.33MiB [00:00, 2.33MiB/s]
New compatible solc version available: 0.6.12
Compiling contracts...
  Solc version: 0.6.12
  Optimizer: Enabled  Runs: 200
  EVM Version: Istanbul
Generating build data...
 - GSNRecipient
 - ...
 - etc.
 - ...
 - Strings

Compiling contracts...
  Solc version: 0.6.12
  Optimizer: Enabled  Runs: 200
  EVM Version: Istanbul        
Generating build data...
 - OpenZeppelin/openzeppelin-contracts@3.4.0/Ownable
 - OpenZeppelin/openzeppelin-contracts@3.4.0/Context
 - smartcontractkit/chainlink-brownie-contracts@0.4.2/AggregatorV3Interface
 - Lottery

Project has been compiled. Build artifacts saved at C:\Users\etc.

smartcontractkit / full-blockchain-solidity-course-py

Lesson 7: Import issue: Source "@openzeppelin/contracts/access/Ownable.sol" not found: File import callback not supported #1788