Nuxt Typescript - fetchOnServer does not exist in type...

[chrissyast]

• I have searched through existing issues
• I have read through docs
• I have read FAQ
• I have tried restarting VS Code or running Vetur: Restart VLS

Info

• Platform: Win 10
• Vetur version: v0.35.0
• VS Code version: 1.67.2

Problem

No error in VLS

In editor:

(property) fetchOnServer: boolean
No overload matches this call.
  The last overload gave the following error.
    Argument of type '{ fetchOnServer: boolean; data(this: Readonly<Record<never, any>> & Vue): any; }' is not assignable to parameter of type 'ComponentOptions<Vue, DefaultData<Vue>, DefaultMethods<Vue>, DefaultComputed, PropsDefinition<DefaultProps>, DefaultProps>'.
      Object literal may only specify known properties, and 'fetchOnServer' does not exist in type 'ComponentOptions<Vue, DefaultData<Vue>, DefaultMethods<Vue>, DefaultComputed, PropsDefinition<DefaultProps>, DefaultProps>'.
Vetur(2769)

However, fetchOnServer is a valid nuxt property https://nuxtjs.org/docs/components-glossary/fetch/#options

Reproducible Case

https://github.com/chrissyast/fetchOnServerBug
Open in VSCode with Vetur extension
npm install
npm run dev
Open pages/index.vue