IDE not picking up $schema in wrangler.jsonc

{
  "$schema": "node_modules/wrangler/config-schema.json", // warning
  "name": "user-application",
  "main": "worker/index.ts",
  "compatibility_date": "2025-06-17",
  "assets": {
    "binding": "ASSETS",
    "not_found_handling": "single-page-application"
  },
  "observability": {
    "enabled": true
  }
}

Unable to load schema from '[...]/cloudflaretest/apps/marketing/node_modules/wrangler/config-schema.json': Schema not found: file:///[...]/cloudflaretest/apps/marketing/node_modules/wrangler/config-schema.json.