deno.json not recognized if not at root of workspace

[mfulton26]

Describe the bug

If I define my deno.json file at the root my workspace then I get proper Deno language support but if I put it in a folder then I do not.

To Reproduce

1. Run "Deno: Initialize Workspace Configuration"
2. Create a folder named "foo"
3. Create a deno.json file in "foo" with some "imports" defined (e.g. for std lib)
4. Create a main.ts file in "foo" and import something leveraging the "imports" defined in the deno.json file

Note how you'll get an error message from VSCode:

Relative import path "$std/flags/mod.ts" not prefixed with / or ./ or ../deno(import-prefix-missing)

However running deno run foo/main.ts works fine (and creates a deno.lock file too)

diff --git a/.vscode/settings.json b/.vscode/settings.json
new file mode 100644
index 0000000..01cede9
--- /dev/null
+++ b/.vscode/settings.json
@@ -0,0 +1,5 @@
+{
+    "deno.enable": true,
+    "deno.lint": true,
+    "deno.unstable": false
+}
\ No newline at end of file
diff --git a/foo/deno.json b/foo/deno.json
new file mode 100644
index 0000000..55ca111
--- /dev/null
+++ b/foo/deno.json
@@ -0,0 +1,5 @@
+{
+  "imports": {
+    "$std/": "https://deno.land/std@0.202.0/"
+  }
+}
diff --git a/foo/main.ts b/foo/main.ts
new file mode 100644
index 0000000..57ebaf7
--- /dev/null
+++ b/foo/main.ts
@@ -0,0 +1,3 @@
+import { parse } from "$std/flags/mod.ts";
+
+console.log(parse(Deno.args));

Expected behavior

The VSCode Deno extension should provide code completion inside the subfolder just as it would if deno.json were at the root of the workspace instead.

Screenshots

Versions

vscode: 1.82.2 deno: 1.37.0 extension: 3.23.1

[nayeemrmn]

This will be coupled with #787. If you have only one subdirectory with a deno.json, you can work around this in the meantime by specifying "deno.config": "foo/deno.json" in your workspace settings.