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chore: update tooling to compile TS for node 18

Tomas Vik (OOO back on 2024-07-02) requested to merge tv/2024-02/upgrade-ts-target into main

Description

This MR updates the TS compiler options and esbuild options to use node 18.

The minimal supported VS Code version is 1.82.0 and that version uses node 18.

Related Issues

Relates to #1232 (closed)

Types of changes

  • Bug fix (non-breaking change which fixes an issue)
  • New feature (non-breaking change which adds functionality)
  • Breaking change (fix or feature that would cause existing functionality to change)
  • Documentation
  • Chore (Related to CI or Packaging to platforms)
  • Test gap

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