VSCode unable to resolve absolute paths in angular project

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So I have a repository which has the code for both Angular app and Nestjs app. Folder structure looks like:

|server
----|main.ts
----|other server files...
|src
----|index.html
----|main.ts
----|other angular components
|tsconfig.app.json
|tsconfig.build.json
|package.json

My tsconfig.app.json looks like (which is being used for compiling angular app):

{
  "compilerOptions": {
    "outDir": "./dist",
    "rootDir": ".",
    "baseUrl": ".",
    "emitDecoratorMetadata": true,
    "experimentalDecorators": true,
    "moduleResolution": "node",
    "target": "ES2022",
    "useDefineForClassFields": false,
    "module": "ES2022",
    "importHelpers": true,
    "removeComments": true,
    "skipLibCheck": true,
    "incremental": true,
    "allowJs": true,
    "strictPropertyInitialization": false,
    "sourceMap": true,
    "typeRoots": ["node_modules/@types"],
    "lib": ["ES2022", "dom"],
    "plugins": [
      {
        "name": "@angular/language-service"
      }
    ]
  },
  "files": ["src/main.ts", "src/polyfills.ts"],
  "exclude": ["node_modules", "dist", "server", "e2e"]
}

I have a code inside src folder, where I want to access some interfaces from server folder. I try to import using import { UserRecord } from 'server/users/interfaces/user'; But it is giving me the error: Cannot find module ‘server/users/interfaces/user’ or its corresponding type declarations.
Similarly I try to access the files within the same src folder like import { environment } from 'src/environments/environment';, it gives me the same error.
The relative paths works fine but absolute paths not working. Please help.

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