Error in VS Code: "Import "airflow" could not be resolved"

Hi all,
I’m trying to develop a new DAG file using VS Code on windows 11 using WSL ubuntu, running Airflow in Docker.
I’m getting the following error:
Screenshot 2023-05-19 142607

I tried: installing “Dev Containers” extension and using “Dev containers: Open Folder in Container” - getting “Workspace doesn’t exist” error.

I will appreciate help with that.