Understanding Isolated Modules in TypeScript
The isolatedModules enables single file transpilation, which allows tools other than TypeScript to transpile your code. It also indicates that you’re operating in a module-based system.
Setting isolatedModules to true in your tsconfig is a good practice because it improves code portability between different systems and prevents unexpected behaviors, such as the one seen with declare.
{ "compilerOptions": { ... "isolatedModules": true }}