Type import not recognised in aws-nodejs-typescript template

Hi all, Ive set up a serverless project from scratch using the aws-nodejs-typescript template, run npm install but when I open serverless.ts I get the below error.

I have typescript installed globally (tsc version 4.1.3)
and when I look in my node modules for serverless, I can see the AWS interface so it’s definitely there
I also have restarted TS server with no luck.

Really frustrating, hope someone can help me trouble shoot, I’m stumped!

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