Add this to the settings.json
"python.analysis.extraPaths": [
"/Applications/Houdini/Houdini20.5.332/Frameworks/Houdini.framework/Versions/20.5/Resources/houdini/python3.11libs",
"/Applications/Houdini/Houdini20.5.332/Frameworks/Houdini.framework/Versions/20.5/Resources/packages/apex/python3.11libs"
]