Use the repo create-vue to get started, this will be the official way to set up a new Vue project with Vite in the future. After running npm init vue@next choose the options appropriate for your use case.
Volar
The first step is to enable the Volar extension and disable the Vetur extension.
Volar is the new recommended extension to use with Vue 3 and typescript.
Typescript
If you chose the Typescript option offered by the CLI tool you should be good to go.
If you run into some issues regarding types try adding the following to your tsconfig.json