vscode-ng-language-service: Language service not loading with config option "files: []"

Describe the bug

Angular HTML Template syntax validation/completion/intelli-sense are not working.

To Reproduce

Steps to reproduce the behavior:

1. npm install -g @angular/cli@next
2. ng new angular10example
3. cd angular10example
4. npm i
5. Open project in VSCode with Angular Language Service extension installed

Expected behavior

Angular HTML template editor should provide validition, syntax checking, completion and “go to definition” functionality. Etc etc.

Logs

Please attach two logs:

1. Console output (Go to toolbar --> View --> Output, and copy the contents)

[Info  - 4:28:28 PM] Angular language server process ID: 34506
[Info  - 4:28:28 PM] Using typescript v3.8.3 from /Users/lincoln/.vscode/extensions/angular.ng-template-0.901.9/node_modules/typescript/lib/tsserverlibrary.js
[Info  - 4:28:28 PM] Using @angular/language-service v9.1.9 from /Users/lincoln/.vscode/extensions/angular.ng-template-0.901.9/server/node_modules/@angular/language-service/bundles/language-service.umd.js
[Info  - 4:28:28 PM] Log file: /Users/lincoln/Library/Application Support/Code/logs/20200526T132525/exthost4/Angular.ng-template/nglangsvc.log
[Info  - 4:28:30 PM] Disabling language service for /Users/lincoln/projects/maritlabs/libraries/angular10example/tsconfig.json because it is not an Angular project ('@angular/core/core.d.ts' could not be found). If you believe you are seeing this message in error, please reinstall the packages in your package.json.
[Error - 4:28:30 PM] No config file for /Users/lincoln/projects/maritlabs/libraries/angular10example/src/app/app.component.html

1. Log file (Path is printed to the console output at startup)

nglangsvc.log

Screenshots

Additional context

Not sure when this stopped working. It actually hasn’t been working for me for about a week, even in my Angular 9 project, and I haven’t been able to figure out what’s causing the problem, but I’ve since upgraded to Angular 10 and it’s still not working.