I am experiencing issues when using "V.S. Code". All of my settings were deleted (or that is the way it seems). I reinstalled V.S. Code, but now I cannot get auto imports to work.
When I write useEffect, I expect VS Code to suggest an import for it from the node modules, however, its not suggesting it.

Okay, I found the answer. The problem was that by default the extension "TypeScript and JavaScript Language Features" was disabled. After enabling now everything work

You might need to add this line to your VS Code "settings.json" file:
{
  "typescript.tsdk": "./node_modules/typescript/lib"
}
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