The template context does not define a member called 'item'

Describe the bug

Not sure if this issue is related to this extension, but the code does compile and work even if the language service gives me an error in the console.

In a component.html file I have this:

<ng-template ng-label-tmp ng-option-tmp let-item="item">
    {{ item.name }} -- {{ item.description }} -- {{ item.price | currency }}
</ng-template>

the let-item="item" piece is red highlighted and this is the description:

The template context does not define a member called ‘item’

To Reproduce Use any *-tmp directives along with let-* ones.

Expected behavior No Errors should be highlighted for the let-item="item" directive.

Logs

1. Console output

[Info  - 17:40:22] Angular language server process ID: 21305
[Info  - 17:40:22] Using typescript v3.7.4 from /home/user/.vscode/extensions/angular.ng-template-0.900.5/node_modules/typescript/lib/tsserverlibrary.js
[Info  - 17:40:24] Using @angular/language-service v9.0.0-rc.9 from /home/user/.vscode/extensions/angular.ng-template-0.900.5/server/node_modules/@angular/language-service/bundles/language-service.umd.js
[Info  - 17:40:25] Log file: /home/user/.config/Code/logs/20200123T153034/exthost9/Angular.ng-template/nglangsvc.log
[Error - 17:40:39] No config file for /home/user/git/projects/my-app/src/app/ui-widgets/app-card/add-item-card/add-item-card.component.html

1. Log file nglangsvc.log

Additional context If I remove both ng-label-tmp and ng-option-tmp directives the error disappears.

UPDATE Downgrading the extension to v0.900.4 the message error disappears. The v0.900.5 starts to show this error.

[ayazhafiz]

@fdinardo okay, the PR above (https://github.com/angular/angular/pull/35036) will make this a warning 🙂

[kyliau]

When diagnostics are performed in the language service, the context for the embedded view is assumed to be the context of the structural directive that is applied to ng-template. This assumption is incorrect, according to the docs in angular.io:

Angular automatically expands the shorthand syntax as it compiles the template. The context for each embedded view is logically merged to the current component context according to its lexical position.