Cannot find declaration to go to: Javscript src is valid [SOLVED] Follow

• When I Ctrl click on the src directory, it properly takes me to jquery source file.
• Loading the test page in my browser works perfectly. (body text is "hello world"). No console errors.
• This behavior started immediately when I upgraded to 2020.2
• I have tried Invalidate Cache / Restart
• This happens in my main project, but I have created a totally blank project (see screenshot) and have the same problem
• Ctrl click on the $ says "Cannot find declaration to go to"
• I have tried absolute path and relative path
• I have searched the web and community and bugs and unable to find a solution (except "add to Library")...
• I DO NOT want to add jquery as a Library, ALL of my javascript include files behave the same way and it is driving me crazy. eg: I might have 2 PHPstorm errors in 2020.1, but have 100+ errors in 2020.2.

Any help much appreciated!