Set jsx preserve in generate ts/jsconfig.json. Fixes #39202

.vscode/settings.json

@@ -34,5 +34,6 @@
 				"command": "${workspaceFolder}\\scripts\\test.bat --coverage --run ${file}"
 			}
 		}
-	]
+	],
+	"typescript.tsdk": "node_modules/typescript/lib"
 }

extensions/typescript/src/utils/tsconfig.ts

@@ -17,7 +17,8 @@ function getEmptyConfig(
 ) {
 	const compilerOptions = [
 		'"target": "ES6"',
-		'"module": "commonjs"'
+		'"module": "commonjs"',
+		'"jsx": "preserve"',
 	];
 	if (!isTypeScriptProject && config.checkJs) {
 		compilerOptions.push('"checkJs": true');