That would certainly explain that error!
PS: That’s the helper extension version, not the PIO version – you’ll find that on the PIO home screen or by running platformio --version… it’s currently 4.2.0 
Could you open PlatformIO IDE Terminal and type pio upgrade --dev. Restart VSCode.
It is also good to reset C/C++ IntelliSense database via VSCode > View > Command Palette > Search for “C++ reset”…
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Upgraded -> restarted VSCode -> reseted c++ IS db (also PIO IS rebuilded) -> Problem with wrong path from first screen gone.
But main problem with “#include” still here. And deleting .vscode folder still helps just one restart cycle.
PIO version 4.2.1a3
Could you provide a simple project to reproduce this issue?
Test project folder with library:
https://drive.google.com/open?id=1yBNTMYnIsnvW4rriy9JDAr2fWioEgDmo
Error:
P.S.: Project compiling correctly.
Does this also happen when you remove all other folders but the test folder from your workspace (you currently have 3 open), and rebuild the Intellisense?
It’s works! Not only with test, with other projects too (when they opened one in time).
But in russian we call this “костыль” (crutch; how this not-serious-patch named in english?).
Please fix this =)
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You could always downgrade your version of VSCode / Microsoft C++ extension… 
It seems like every time there’s an update to either it’s 50/50 whether stuff that previously worked will now break. Multi-root workspaces and IntelliSense being high on the list of things likely to break. 
Looks like it’s a problem with VSCode IntelliSense engine, I’ve opened an issue in their repository:
Let’s see what they’ll come up with.
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