Unable to resolve path to module when using .tsx with absolute paths in next js

Question

I have installed eslint for a next.js project which uses typescript and absolute paths. When I try to import a component which has a .tsx extension using the absolute path I get the following eslint error.

Unable to resolve path to module 'componentsFolder/MyComponentFile'.eslintimport/no-unresolved

The code works fine and only eslint gives a red warning

I have followed the solutions described in this answer, how ever nothing seems to work.

The current state of my eslint.json is as follows.

{
    "env": {
        "browser": true,
        "es2021": true
    },
    "extends": [
        "plugin:react/recommended",
        "airbnb"
    ],
    "parser": "@typescript-eslint/parser",
    "parserOptions": {
        "ecmaFeatures": {
            "jsx": true
        },
        "ecmaVersion": 12,
        "sourceType": "module"
    },
    "plugins": [
        "react",
        "@typescript-eslint"
    ],
    "settings": {
        "import/resolver": {
            "node": {
                "extensions": [
                    ".js",
                    ".jsx",
                    ".ts",
                    ".tsx"
                ]
            }
        }
    },
    "rules": {
        "react/react-in-jsx-scope": "off",
        "react/jsx-filename-extension": [
            1,
            {
                "extensions": [
                    ".jsx",
                    ".tsx"
                ]
            }
        ],
        "react/prop-types": 0,
        "no-underscore-dangle": 0
    }
}

The tsconfig.json file is as follows.

{
  "compilerOptions": {
    "baseUrl": ".",
    "target": "es5",
    "lib": [
      "dom",
      "dom.iterable",
      "esnext"
    ],
    "allowJs": true,
    "skipLibCheck": true,
    "strict": false,
    "forceConsistentCasingInFileNames": true,
    "noEmit": true,
    "esModuleInterop": true,
    "module": "esnext",
    "moduleResolution": "node",
    "resolveJsonModule": true,
    "isolatedModules": true,
    "jsx": "preserve"
  },
  "exclude": [
    "node_modules"
  ],
  "include": [
    "next-env.d.ts",
    "**/*.ts",
    "**/*.tsx"
  ]
}