When this VS Code extension is enabled, it will automatically use the built-in TypeScript plugin for all your Next.js projects.
Learn more about the Next.js TypeScript Plugin: https://www.youtube.com/watch?v=pqMqn9fKEf8.
This is not an official Next.js extension. Without it, you can manually switch to use the Workspace TypeScript version when you open a new Next.js project to start using the official Next.js plugin. This is due to a current VS Code limitation.
The extension only automates this process, without any other changes.