Project initialization failure due to undefined variable in hardhat.config

[Mikhail Melnik]

Project initialization fails with

Hardhat project 'test-project' was not able to initialize correctly: structuredClone is not defined

structuredClone was added in node 17.0.0 and the hardhat-vscode is probably using node version 16 hence the error.

Is there a way to change node version that hardhat-vscode uses?