VSCode erroneous errors

The HA Config Helper in VSCode is giving erroneous errors. This only started after updating to the latest HA core and operating system. I did not see anything in breaking changes.
Note, this is not the VSCode in-browser add-on.

The below picture shows errors, but my automation runs fine.

There is a discussion here, but I think it is for the VSCode in-browser add-on, not VSCode IDE used outside of HA.

I have uninstalled and reinstalled the helper with no effect. I also played around with the YAML styling, but did not find a solution. If you see a problem with my styling, please let me know.

HA Config Helper is still usable, since it will show real errors. But the erroneous errors are irritating.

One recommendation from maybe the above thread or a link is to get rid of the Config Helper and just use the YAML extension. I assume that loses entity auto-fill which I like.

Any recommendations are welcome.

My setup