Parsing error: "parserOptions.project" has been set for @typescript-eslint/parser. The file does not match your project config. (Typescript)

The problem

Hi, I'm currently setting up a new directory with some linting required but when I set up the eslintrc.json I get this error "parserOptions.project\" has been set for @typescript-eslint/parser.\nThe file does not match your project config: test/src/app.ts The file must be included in at least one of the projects provided.

This issue is purely isolated to VSCode and doesn't occur if I run eslint via the console.

What I have tried

As per these two links I've found via some google searches:

1. "parserOptions.project" has been set for @typescript-eslint/parser
2. Parsing error: "parserOptions.project" has been set for @typescript-eslint/parser. The file does not match your project config: .eslintrc.js

I have double checked that I have installed the parser and also ensured the eslintrc.json has the path to my tsconfig which is in the same directory.

My Code

eslintrc.json

{
  "root": true,
  "env": {
    "node": true,
    "jest": false
  },
  "parser": "@typescript-eslint/parser",
  "parserOptions": {
      "project": "tsconfig.json"
  },
  "plugins": [
    "@typescript-eslint"
  ],
  "rules": {
    "@typescript-eslint/adjacent-overload-signatures": "error",
    "@typescript-eslint/array-type": ["error", { "default": "array-simple" }],
    "@typescript-eslint/await-thenable": "error"
  }
}

tsconfig.json

  "compilerOptions": {
    "module": "commonjs",
    "target": "es2021",
    "moduleResolution": "node",
    "lib": ["es2021"],
    "esModuleInterop": true,
    "outDir": "./build",
    "sourceMap": true,
    "allowSyntheticDefaultImports": true,
    "strict": true,
    "strictPropertyInitialization": false
  },
  "exclude": [
    "node_modules",
    "build"
  ],
  "include": [
    "./src"
  ]
}

My file structure is like this

test
 - src (folder)
   - app.ts
 - eslintrc.json
 - tsconfig.json
 - package-lock.json
 - package.json

Any assistance would be really appreciated, I'll be sticking around if there are any clarifications needed or other questions. Thank you