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J BengelJ Bengel 

Cannot find the declaration of the element 'LightningMessageChannel'

This is coming up when creating a LightningMessageChannel. The problem appears to be that "LightningMessageChannel" is not defined in the namespace schema (or that's the going theory among the answers I've come across at least).
<LightningMessageChannel xmlns="http://soap.sforce.com/2006/04/metadata">

The advertised "solution" is to turn off XML validation in VS Code, which makes the message go away, but is kind of like turning up the radio so that you don't hear the crank-end rod knock your engine is making. You can get away with that for a while, but if you don't fix it, sooner or later you're going to end up with a hole in your oil pan and smoke billowing everywhere.
SwethaSwetha (Salesforce Developers) 
HI J Bengel,
Based on https://salesforce.stackexchange.com/questions/328542/cannot-find-the-declaration-of-element it appears many users solved this issue by Unchecking "Validation".

I agree this is not a perfect solution but trying to understand what is the impact of turning this off. Any thoughts?
J BengelJ Bengel
I have no idea, really, which is part of why I posted this in the first place.