c:\Users\XXXXX.vscode\extensions\tmssoftware.tmswebcore-2.7.2184\resources\coresource\RTL\system.pas (358, 17) Error: Forward function not resolved "VarRecs"
Compilation aborted
I retested this here but I could not see an issue.
Test was performed with Visual Studio Code 1.105, Windows 11, TMS WEB Core for VSC v2.7.2184 full version.
Are you still you properly activated the license?