VueJS/Typescript – Cannot find module ‘./components/Navigation’ or its corresponding type declarations

In the src folder add the file shims-vue.d.ts with the following content :

Vue 2 :

declare module "*.vue" {
  import Vue from 'vue'
  export default Vue
}

Vue 3:

declare module '*.vue' {
  import type { DefineComponent } from 'vue'
  const component: DefineComponent<{}, {}, any>
  export default component
}

and import the component with its extension .vue :

 import Navigation from './components/Navigation.vue';

instead of :

import Navigation from './components/Navigation';