This seem to be a Execution Policy issue. From about Execution Policies - PowerShell | Microsoft Learn I figure Bypass is fine for my own code, so I ran PowerShell as admin, then ‘Set-ExecutionPolicy -ExecutionPolicy Bypass’.
I found I had to close and reopen VSCode though to make the error go away though.
I don’t know if this helps any of you guys but I also had a similar problem here and I spent a long time trying to figure it out. I am using WINDOWS just FYI.
The problem I had (getting this same message “tsc: build - tsconfig.json’ terminated with exit code 1”) was that I have git bash integrated into the terminal and by default git bash has separators like this “Desktop\Project\Typescript\etc…” instead of the usual “Desktop/Project/Typescript/etc…” (so backslashes instead of forward). For some reason when the file was executed it paths to “DesktopProjectTypescriptetc…” ← which doesn’t exist as a file.