No config found for file "FILENAME.ml" in ".". Try calling `dune build` for OCaml project

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I have installed the Ocaml compiler, dune and opam and followed this quickstart set up. I get the problem notification on VSCode

No config found for file "FILENAME.ml" in ".". Try calling `dune build`.

After following the advice and running dune build in the terminal I get the following error message:

Error: I cannot find the root of the current workspace/project.
If you would like to create a new dune project, you can type:

    dune init project NAME

Otherwise, please make sure to run dune inside an existing project or
workspace.

However I 've already set up a new project before as instructed in the quickstart with dune init proj project_name What am I doing wrong to set up a proper Ocaml project with the file and project manager in VS Code?

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