Deno LSP doesn't recognize workspaces as imports

For some reason the vscode plugin for deno says this code is invalid even though it runs perfectly fine via the cli.
mod.ts:

import { add } from "@mypackage/test";

console.log(add(1, 2)); // 3

import { add } from "@mypackage/test";

console.log(add(1, 2)); // 3

import { add } from "@mypackage/test";

console.log(add(1, 2)); // 3

import { add } from "@mypackage/test";

console.log(add(1, 2)); // 3

deno.jsonc:

{
    "name": "@mypackage/root",
    "version": "0.0.1",
    "workspaces": [
        "./test"
    ]
}

{
    "name": "@mypackage/root",
    "version": "0.0.1",
    "workspaces": [
        "./test"
    ]
}

{
    "name": "@mypackage/root",
    "version": "0.0.1",
    "workspaces": [
        "./test"
    ]
}

{
    "name": "@mypackage/root",
    "version": "0.0.1",
    "workspaces": [
        "./test"
    ]
}

./test/mod.ts

export const add = (a: number, b: number) => a + b;

export const add = (a: number, b: number) => a + b;

export const add = (a: number, b: number) => a + b;

export const add = (a: number, b: number) => a + b;

./test/deno.jsonc

{
    "name": "@mypackage/test",
    "version": "0.0.1",
    "exports": "./mod.ts"
}

{
    "name": "@mypackage/test",
    "version": "0.0.1",
    "exports": "./mod.ts"
}

{
    "name": "@mypackage/test",
    "version": "0.0.1",
    "exports": "./mod.ts"
}

{
    "name": "@mypackage/test",
    "version": "0.0.1",
    "exports": "./mod.ts"
}

When I run mod.ts via the cli I get 3 which is expected but the vscode lsp says

Relative import path "@mypackage/test" not prefixed with / or ./ or ../

Relative import path "@mypackage/test" not prefixed with / or ./ or ../

Relative import path "@mypackage/test" not prefixed with / or ./ or ../

Relative import path "@mypackage/test" not prefixed with / or ./ or ../