Usually Luau definition files get ignored for syntax errors since they don't follow regular Luau syntax... But when you open a directory that contains multiple projects, and each project has its own definition file/vscode settings/.luaurc, Luau Language Server doesn't realize it has to ignore definition files in those projects.
Types from those definitions files aren't loaded at all for files within those projects, thereby causing a bunch more incorrect TypeErrors.
Directory structure:
scripts
| fixkcolor
| | .seal
| | | typedefs
| | | | globals.d.luau
| otherproject
| | .seal
| | | typedefs
| | | | globals.d.luau
If I open scripts/fixkcolor where and cwd is inside the fixkcolor directory everything works perfectly (since the definitions file is linked properly in fixkcolor/.vscode/settings.json), but if I open its parent directory it all goes haywire.
scripts doesn't have a .vscode folder or any definition files of its own since it just stores other projects
Additionally, Luau Language Server doesn't recognize any types from those definitions files within those directories:
