The issue is VS code doesn't see UnityEngine.UI
library.
I had this issue before and I solved like it this: I changed the code editor in preferences to Visual Studio, regenerated files and launched c# project. On the start, vs created needed .csproj files and then I closed vs and changed it back to vs code and it workeed.
However, now I am working on another project and I encountered same issue, I tried the method I described above but it didn't work.