Red Squiggly in freshly initialized Vuetify project

[derekwisong]

• [x] I have searched through existing issues
• [x] I have read through docs
• [x] I have read FAQ
• [x] I have tried restarting VS Code or running Vetur: Restart VLS

Info

• Platform: Linux
• Vetur version: 0.34.1
• VS Code version: 1.60.2

Problem

The following code in a fresh Vuetify project shows a red squiggly and Vetur error 2307.

        <v-img
          :src="require('../assets/logo.svg')"
          class="my-3"
          contain
          height="200"
        />

Reproducible Case

1. create new directory, open in vscode
2. create new vue 2 project: vue create frontend
3. add vuetify: cd frontend; vue add vuetify and select default install.
4. add vetur.config.js to root of vscode directory containing the following and restart the VLS

// vetur.config.js
/** @type {import('vls').VeturConfig} */
module.exports = {
  // **optional** default: `{}`
  // override vscode settings
  // Notice: It only affects the settings used by Vetur.
  settings: {
    "vetur.useWorkspaceDependencies": true,
    "vetur.experimental.templateInterpolationService": true
  },
  // **optional** default: `[{ root: './' }]`
  // support monorepos
  projects: ['./frontend']
}

Screenshot of error attached

[yoyo930021]

You only need a svg.d.ts file in src folder.

declare module '*.svg';