Error importing mjs file into Typescript: TS2307: Cannot find module '../../env.mjs' or its corresponding type declarations

Question

Using this library: https://env.t3.gg/docs/nextjs to build env validator in nextjs. I am getting following error on "yarn dev": TS2307: Cannot find module '../../env.mjs' or its corresponding type declarations.

I can successfully run the app, but the error shows up everytime when I start the server. Not sure if this is serious.

**env.mjs file: **

// @ts-check
import { createEnv } from '@t3-oss/env-nextjs';
import { z } from 'zod';

export const env = createEnv({
  /*
   * Serverside Environment variables, not available on the client.
   * Will throw if you access these variables on the client.
   */
  server: {
    API_URL: z.string(),
    NODE_ENV: z.enum(['development', 'test', 'production']),
  },
  /*
   * Environment variables available on the client (and server).
   *
   * 💡 You'll get type errors if these are not prefixed with NEXT_PUBLIC_.
   */
  client: {
    NEXT_PUBLIC_ENV: z.enum(['development', 'test', 'production']),
    NEXT_PUBLIC_API_URL: z.string(),
  },
  /*
   * Due to how Next.js bundles environment variables on Edge and Client,
   * we need to manually destructure them to make sure all are included in bundle.
   *
   * 💡 You'll get type errors if not all variables from `server` & `client` are included here.
   */
  runtimeEnv: {
    API_URL: process.env.API_URL,
    NODE_ENV: process.env.NODE_ENV,
    NEXT_PUBLIC_ENV: process.env.NODE_ENV,
    NEXT_PUBLIC_API_URL: process.env.API_URL,
  },
});

tsconfig.json

{
  "compilerOptions": {
    "target": "es5",
    "lib": ["dom", "dom.iterable", "esnext"],
    "allowJs": true,
    "checkJs": true,
    "skipLibCheck": true,
    "strict": true,
    "forceConsistentCasingInFileNames": true,
    "noEmit": true,
    "esModuleInterop": true,
    "module": "esnext",
    "moduleResolution": "node",
    "resolveJsonModule": true,
    "isolatedModules": true,
    "jsx": "preserve",
    "incremental": true,
    "noUncheckedIndexedAccess": true
    "baseUrl": ".",
    "paths": {
      "@root/*": [
        "src/*"
      ]
    },
    "allowJs": true,
    "moduleResolution": "node"
  },
  "include": [
    "next.config.mjs",
    "next-env.d.ts",
    ".next/types/**/*.ts",
    "**/*.ts",
    "**/*.tsx"
  ],
"exclude": ["node_modules"]
}

package.json

{
  "dependencies": {
    "@acme/core": "0.0.0",
    "@acme/db": "0.0.0",
    "@prisma/client": "4.15.0",
    "@t3-oss/env-nextjs": "^0.4.0",
    "@tanstack/react-query": "^4.29.12",
    "@trpc/client": "^10.28.2",
    "@trpc/next": "^10.28.2",
    "@trpc/react-query": "^10.28.2",
    "@trpc/server": "10.28.2",
    "clsx": "1.2.1",
    "daisyui": "3.0.0",
    "i18next": "22.5.0",
    "next": "13.4.4",
    "next-i18next": "13.2.2",
    "react": "18.2.0",
    "react-dom": "18.2.0",
    "react-hook-form": "7.44.2",
    "react-i18next": "^12.3.1",
    "react-query": "3.39.3",
    "superjson": "1.12.3",
    "zod": "3.21.4"
  },
  "devDependencies": {
    "@acme/tsconfig": "0.0.0",
    "@axe-core/react": "4.7.1",
    "@types/node": "20.2.5",
    "@types/react": "18.2.7",
    "@types/react-dom": "18.2.4",
    "autoprefixer": "10.4.14",
    "eslint": "8.41.0",
    "eslint-config-acme": "0.0.0",
    "eslint-plugin-tailwindcss": "3.12.1",
    "i18next-typescript": "0.1.0",
    "postcss": "8.4.24",
    "prettier": "2.8.8",
    "prettier-plugin-tailwindcss": "0.3.0",
    "tailwindcss": "3.3.2",
    "typescript": "5.0.4"
  },
}