diff --git a/.gitignore b/.gitignore
index f7999996..da4198f2 100644
--- a/.gitignore
+++ b/.gitignore
@@ -106,3 +106,7 @@ dist
 
 # TernJS port file
 .tern-port
+
+# IDEs
+.vscode
+.idea
diff --git a/index.ts b/index.ts
index f552cfd8..98f4e00f 100755
--- a/index.ts
+++ b/index.ts
@@ -445,9 +445,6 @@ async function init() {
         path: './nightwatch/tsconfig.json'
       })
     }
-    if (needsNightwatchCT) {
-      render('tsconfig/nightwatch-ct')
-    }
     fs.writeFileSync(
       path.resolve(root, 'tsconfig.json'),
       JSON.stringify(rootTsConfig, null, 2) + '\n',
diff --git a/template/tsconfig/base/tsconfig.app.json b/template/tsconfig/base/tsconfig.app.json
index e14c754d..6b3d763f 100644
--- a/template/tsconfig/base/tsconfig.app.json
+++ b/template/tsconfig/base/tsconfig.app.json
@@ -4,8 +4,9 @@
   "exclude": ["src/**/__tests__/*"],
   "compilerOptions": {
     "composite": true,
-    "tsBuildInfoFile": "./node_modules/.tmp/tsconfig.app.tsbuildinfo",
-
+    "noEmit": false,
+    "emitDeclarationOnly": true,
+    "outDir": "./node_modules/.tmp/app",
     "baseUrl": ".",
     "paths": {
       "@/*": ["./src/*"]
diff --git a/template/tsconfig/base/tsconfig.node.json b/template/tsconfig/base/tsconfig.node.json
index f0940630..0ff9dcfc 100644
--- a/template/tsconfig/base/tsconfig.node.json
+++ b/template/tsconfig/base/tsconfig.node.json
@@ -9,9 +9,9 @@
   ],
   "compilerOptions": {
     "composite": true,
-    "noEmit": true,
-    "tsBuildInfoFile": "./node_modules/.tmp/tsconfig.node.tsbuildinfo",
-
+    "noEmit": false,
+    "emitDeclarationOnly": true,
+    "outDir": "./node_modules/.tmp/node",
     "module": "ESNext",
     "moduleResolution": "Bundler",
     "types": ["node"]
diff --git a/template/tsconfig/cypress-ct/tsconfig.cypress-ct.json b/template/tsconfig/cypress-ct/tsconfig.cypress-ct.json
index 12833b27..4002dc7d 100644
--- a/template/tsconfig/cypress-ct/tsconfig.cypress-ct.json
+++ b/template/tsconfig/cypress-ct/tsconfig.cypress-ct.json
@@ -1,15 +1,21 @@
 {
-  "extends": "./tsconfig.app.json",
+  "extends": "@vue/tsconfig/tsconfig.dom.json",
   "include": [
-    "env.d.ts",
-    "src/**/*",
-    "src/**/*.vue",
+    "src/**/__tests__/*",
     "cypress/support/component.*",
     "cypress/support/commands.ts"
   ],
-  "exclude": [],
   "compilerOptions": {
     "composite": true,
-    "tsBuildInfoFile": "./node_modules/.tmp/tsconfig.cypress-ct.tsbuildinfo"
-  }
+    "noEmit": false,
+    "emitDeclarationOnly": true,
+    "outDir": "./node_modules/.tmp/cypress-ct",
+    "baseUrl": ".",
+    "paths": {
+      "@/*": ["./src/*"]
+    }
+  },
+  "references": [
+    { "path": "./tsconfig.app.json" }
+  ]
 }
diff --git a/template/tsconfig/nightwatch-ct/tsconfig.app.json b/template/tsconfig/nightwatch-ct/tsconfig.app.json
deleted file mode 100644
index e14c754d..00000000
--- a/template/tsconfig/nightwatch-ct/tsconfig.app.json
+++ /dev/null
@@ -1,14 +0,0 @@
-{
-  "extends": "@vue/tsconfig/tsconfig.dom.json",
-  "include": ["env.d.ts", "src/**/*", "src/**/*.vue"],
-  "exclude": ["src/**/__tests__/*"],
-  "compilerOptions": {
-    "composite": true,
-    "tsBuildInfoFile": "./node_modules/.tmp/tsconfig.app.tsbuildinfo",
-
-    "baseUrl": ".",
-    "paths": {
-      "@/*": ["./src/*"]
-    }
-  }
-}
diff --git a/template/tsconfig/vitest/tsconfig.vitest.json b/template/tsconfig/vitest/tsconfig.vitest.json
index 571995d1..bbf047c2 100644
--- a/template/tsconfig/vitest/tsconfig.vitest.json
+++ b/template/tsconfig/vitest/tsconfig.vitest.json
@@ -1,11 +1,19 @@
 {
-  "extends": "./tsconfig.app.json",
-  "exclude": [],
+  "extends": "@vue/tsconfig/tsconfig.dom.json",
+  "include": ["src/**/__tests__/*"],
   "compilerOptions": {
     "composite": true,
-    "tsBuildInfoFile": "./node_modules/.tmp/tsconfig.vitest.tsbuildinfo",
-
+    "noEmit": false,
+    "emitDeclarationOnly": true,
+    "outDir": "./node_modules/.tmp/vitest",
+    "baseUrl": ".",
+    "paths": {
+      "@/*": ["./src/*"]
+    },
     "lib": [],
     "types": ["node", "jsdom"]
-  }
+  },
+  "references": [
+    { "path": "./tsconfig.app.json" }
+  ]
 }