jsconfig.json doesn't seem to work in VSCode?

Question

This is a little weird. I tried to shorten my import statements with this jsconfig.json:

{
    "compilerOptions": {
        "baseUrl": "./",
        "paths": {
            "@/*": ["./*"]
        }
    }
}

Now the weird thing is that Intellisense actually recognizes this file and gives me an auto-fill to import it.

For example: ( Please Ignore the weird file structure I've been trying out different things trying to fix this )

import { PORT } from "@/env/index";

File structure is as follows: File Structure

The error that node throws is:

internal/process/esm_loader.js:74
    internalBinding('errors').triggerUncaughtException(
                              ^

Error [ERR_MODULE_NOT_FOUND]: Cannot find package '@/env' imported from C:\Users\[Censored]\main.js
    at packageResolve (internal/modules/esm/resolve.js:664:9)
    at moduleResolve (internal/modules/esm/resolve.js:705:18)
    at Loader.defaultResolve [as _resolve] (internal/modules/esm/resolve.js:819:11)      
    at Loader.resolve (internal/modules/esm/loader.js:89:40)
    at Loader.getModuleJob (internal/modules/esm/loader.js:242:28)
    at ModuleWrap.<anonymous> (internal/modules/esm/module_job.js:73:40)
    at link (internal/modules/esm/module_job.js:72:36) {
  code: 'ERR_MODULE_NOT_FOUND'
}

I currently have no clue how to fix this because every tutorial I've seen on the internet does the exact same.

I hope someone can help me with this.