Includes typescript, eslint, and prettier setup.
Extends uses a config file which applies a set of rules when you add that to the extends options.
Plugins on the other hand provide you with a set of rules that you can individually apply depending on your need. Just having a plugin does not enforce any rule. You have to choose which rules you need.
@typescript-eslint/parser parses Typescript files for you. ESlint by default doesn't know how to parse Typescript.
eslint-plugin-prettier turns Prettier rules into ESLint rules.
eslint-config-prettier turns off all ESLint rules that have the potential to interfere with Prettier rules (required by eslint-plugin-prettier).