At work, We have a multi-module(nested go modules) repo and VSCode is always having problem with that. I was chatting with gopls team on slack and came to know about a new feature that helps with multi-module and VSCode + Go.
There are 2 ways to fix this issue in VSCode Go extension -
if you have multiple modules or nested modules in a single repo, you will need to create a “workspace folder” for each module.
Workspace module (experimental)
If you want to work with all the nested modules in a single workspace, there is an opt-in module feature that allows to work with multiple modules without creating workspace folders for each module. Set this in your settings -
More information about this feature is available at official