"Cannot find name x" on template when using `script setup lang='ts'` with volar

[maninak]

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With volar v0.28.10 installed (vetur is uninstalled) in vscode 1.61.2 and a clean git-clone of af33ccb97b877353fe7917d8dcf16961f9acf1d6 I'm getting red squigglies from typescript on the template for variables defined inside script setup.

Does anybody else have this? How would I go about fixing this?

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Thank you antfu for this super useful repo we can use to bootstrap new projects while plugins are catching up with nuxt3. :pray:

[maninak]

Looks like this is related nuxt/bridge#215