Babel not recognizing TypeScript in VueJS components, working elsewhere

Snip of components/Employees.vue

<script>
import Vue from 'vue';

export default Vue.extend({
    props: ['employees', 'filter', 'fields_employee', 'selected'],
    computed: {
        filteredEmployees() {
            return this.employees.filter(this.filter);
        }
    },
    methods: {
        itemSelected(item: any) {
            this.$emit('itemSelected', item);
        }
    }
});
</script>

which produces the following error

Employees.vue: Unexpected token, expected "," (30:25)

  28 |     },
  29 |     methods: {
> 30 |         itemSelected(item: any) {
     |                          ^
  31 |             this.$emit('itemSelected', item);
  32 |         }
  33 |     }

My main view is using TypeScript without issues, but it looks like this file isn't being recognized properly. My tsconfig.json should be capturing the file properly

"include": [
  "src/**/*.ts",
  "src/**/*.tsx",
  "src/**/*.vue",
  "tests/**/*.ts",
  "tests/**/*.tsx"
],