diff --git a/examples/generators/production_python_smart_contract_python/.vscode/settings.json b/examples/generators/production_python_smart_contract_python/.vscode/settings.json
index 61681c0..2130dbb 100644
--- a/examples/generators/production_python_smart_contract_python/.vscode/settings.json
+++ b/examples/generators/production_python_smart_contract_python/.vscode/settings.json
@@ -14,6 +14,9 @@
   
   // Python
   "python.analysis.extraPaths": ["${workspaceFolder}/smart_contracts"],
+  "python.analysis.diagnosticSeverityOverrides": {
+    "reportMissingModuleSource": "none"
+  },
   "python.defaultInterpreterPath": "${workspaceFolder}/.venv",
   "[python]": {
     "editor.codeActionsOnSave": {
diff --git a/examples/generators/production_python_smart_contract_python/smart_contracts/hello_world/contract.py b/examples/generators/production_python_smart_contract_python/smart_contracts/hello_world/contract.py
index 9052c05..a0b333a 100644
--- a/examples/generators/production_python_smart_contract_python/smart_contracts/hello_world/contract.py
+++ b/examples/generators/production_python_smart_contract_python/smart_contracts/hello_world/contract.py
@@ -1,4 +1,3 @@
-# pyright: reportMissingModuleSource=false
 from algopy import ARC4Contract, arc4
 
 
diff --git a/examples/generators/production_python_smart_contract_typescript/.vscode/settings.json b/examples/generators/production_python_smart_contract_typescript/.vscode/settings.json
index dd846d7..df0395b 100644
--- a/examples/generators/production_python_smart_contract_typescript/.vscode/settings.json
+++ b/examples/generators/production_python_smart_contract_typescript/.vscode/settings.json
@@ -17,6 +17,9 @@
   
   // Python
   "python.analysis.extraPaths": ["${workspaceFolder}/smart_contracts"],
+  "python.analysis.diagnosticSeverityOverrides": {
+    "reportMissingModuleSource": "none"
+  },
   "python.defaultInterpreterPath": "${workspaceFolder}/.venv",
   "[python]": {
     "editor.codeActionsOnSave": {
diff --git a/examples/generators/production_python_smart_contract_typescript/smart_contracts/hello_world/contract.py b/examples/generators/production_python_smart_contract_typescript/smart_contracts/hello_world/contract.py
index 9052c05..a0b333a 100644
--- a/examples/generators/production_python_smart_contract_typescript/smart_contracts/hello_world/contract.py
+++ b/examples/generators/production_python_smart_contract_typescript/smart_contracts/hello_world/contract.py
@@ -1,4 +1,3 @@
-# pyright: reportMissingModuleSource=false
 from algopy import ARC4Contract, arc4
 
 
diff --git a/examples/generators/starter_python_smart_contract_python/.vscode/settings.json b/examples/generators/starter_python_smart_contract_python/.vscode/settings.json
index 0a9b7c8..687f930 100644
--- a/examples/generators/starter_python_smart_contract_python/.vscode/settings.json
+++ b/examples/generators/starter_python_smart_contract_python/.vscode/settings.json
@@ -14,6 +14,9 @@
   
   // Python
   "python.analysis.extraPaths": ["${workspaceFolder}/smart_contracts"],
+  "python.analysis.diagnosticSeverityOverrides": {
+    "reportMissingModuleSource": "none"
+  },
   "python.defaultInterpreterPath": "${workspaceFolder}/.venv",
   "[python]": {
     "editor.codeActionsOnSave": {
diff --git a/examples/generators/starter_python_smart_contract_python/smart_contracts/hello_world/contract.py b/examples/generators/starter_python_smart_contract_python/smart_contracts/hello_world/contract.py
index 9052c05..a0b333a 100644
--- a/examples/generators/starter_python_smart_contract_python/smart_contracts/hello_world/contract.py
+++ b/examples/generators/starter_python_smart_contract_python/smart_contracts/hello_world/contract.py
@@ -1,4 +1,3 @@
-# pyright: reportMissingModuleSource=false
 from algopy import ARC4Contract, arc4
 
 
diff --git a/examples/generators/starter_python_smart_contract_typescript/.vscode/settings.json b/examples/generators/starter_python_smart_contract_typescript/.vscode/settings.json
index 0bffa07..42babe6 100644
--- a/examples/generators/starter_python_smart_contract_typescript/.vscode/settings.json
+++ b/examples/generators/starter_python_smart_contract_typescript/.vscode/settings.json
@@ -17,6 +17,9 @@
   
   // Python
   "python.analysis.extraPaths": ["${workspaceFolder}/smart_contracts"],
+  "python.analysis.diagnosticSeverityOverrides": {
+    "reportMissingModuleSource": "none"
+  },
   "python.defaultInterpreterPath": "${workspaceFolder}/.venv",
   "[python]": {
     "editor.codeActionsOnSave": {
diff --git a/examples/generators/starter_python_smart_contract_typescript/smart_contracts/hello_world/contract.py b/examples/generators/starter_python_smart_contract_typescript/smart_contracts/hello_world/contract.py
index 9052c05..a0b333a 100644
--- a/examples/generators/starter_python_smart_contract_typescript/smart_contracts/hello_world/contract.py
+++ b/examples/generators/starter_python_smart_contract_typescript/smart_contracts/hello_world/contract.py
@@ -1,4 +1,3 @@
-# pyright: reportMissingModuleSource=false
 from algopy import ARC4Contract, arc4
 
 
diff --git a/examples/production_python/.vscode/settings.json b/examples/production_python/.vscode/settings.json
index 61681c0..2130dbb 100644
--- a/examples/production_python/.vscode/settings.json
+++ b/examples/production_python/.vscode/settings.json
@@ -14,6 +14,9 @@
   
   // Python
   "python.analysis.extraPaths": ["${workspaceFolder}/smart_contracts"],
+  "python.analysis.diagnosticSeverityOverrides": {
+    "reportMissingModuleSource": "none"
+  },
   "python.defaultInterpreterPath": "${workspaceFolder}/.venv",
   "[python]": {
     "editor.codeActionsOnSave": {
diff --git a/examples/production_python/smart_contracts/hello_world/contract.py b/examples/production_python/smart_contracts/hello_world/contract.py
index 9052c05..a0b333a 100644
--- a/examples/production_python/smart_contracts/hello_world/contract.py
+++ b/examples/production_python/smart_contracts/hello_world/contract.py
@@ -1,4 +1,3 @@
-# pyright: reportMissingModuleSource=false
 from algopy import ARC4Contract, arc4
 
 
diff --git a/examples/starter_python/.vscode/settings.json b/examples/starter_python/.vscode/settings.json
index 0a9b7c8..687f930 100644
--- a/examples/starter_python/.vscode/settings.json
+++ b/examples/starter_python/.vscode/settings.json
@@ -14,6 +14,9 @@
   
   // Python
   "python.analysis.extraPaths": ["${workspaceFolder}/smart_contracts"],
+  "python.analysis.diagnosticSeverityOverrides": {
+    "reportMissingModuleSource": "none"
+  },
   "python.defaultInterpreterPath": "${workspaceFolder}/.venv",
   "[python]": {
     "editor.codeActionsOnSave": {
diff --git a/examples/starter_python/smart_contracts/hello_world/contract.py b/examples/starter_python/smart_contracts/hello_world/contract.py
index 9052c05..a0b333a 100644
--- a/examples/starter_python/smart_contracts/hello_world/contract.py
+++ b/examples/starter_python/smart_contracts/hello_world/contract.py
@@ -1,4 +1,3 @@
-# pyright: reportMissingModuleSource=false
 from algopy import ARC4Contract, arc4
 
 
diff --git a/template_content/smart_contracts/{{ contract_name }}/contract.py.jinja b/template_content/smart_contracts/{{ contract_name }}/contract.py.jinja
index 0fb0bc7..9828347 100644
--- a/template_content/smart_contracts/{{ contract_name }}/contract.py.jinja	
+++ b/template_content/smart_contracts/{{ contract_name }}/contract.py.jinja	
@@ -1,4 +1,3 @@
-# pyright: reportMissingModuleSource=false
 from algopy import ARC4Contract, arc4
 
 
diff --git a/template_content/{% if ide_vscode %}.vscode{% endif %}/settings.json.jinja b/template_content/{% if ide_vscode %}.vscode{% endif %}/settings.json.jinja
index 5c5dd2b..af166ab 100644
--- a/template_content/{% if ide_vscode %}.vscode{% endif %}/settings.json.jinja	
+++ b/template_content/{% if ide_vscode %}.vscode{% endif %}/settings.json.jinja	
@@ -17,6 +17,9 @@
   {% endif %}
   // Python
   "python.analysis.extraPaths": ["${workspaceFolder}/smart_contracts"],
+  "python.analysis.diagnosticSeverityOverrides": {
+    "reportMissingModuleSource": "none"
+  },
   "python.defaultInterpreterPath": "${workspaceFolder}/.venv",
   "[python]": {
     "editor.codeActionsOnSave": {