jsconfig.js file not working with symlink package

Question

I have a React node repo that imports from a custom node repo. Both repos are located in my local machine. I have jsconfig.js files in both repo, using VS code. However, only the React repo is recognizing the jsconfig.js file. The jsconfig.js file in the imported module appears to be completely ignored.

The the imported module is symlinked into my React repo via npm like so:

npm link

This is what is in both jsconfig.js files:

{
  "compilerOptions": {
    "baseUrl": "./src"
  }
}

Why is the jsconfig.js file being completely ignored in the imported module. Does being symlinked causes this?