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When the IDE is not open at the root directory of Vue projects, the error message "Parsing error: No babel config file detected" means that the IDE cannot find the Babel configuration file (babel.config.js) in the project directory. Babel is a tool used to transpile modern JavaScript code to be compatible with older browsers, and the configuration file specifies which presets and plugins should be used for this transpilation. Without this file, the IDE cannot properly transpile the code and throws the error message. To resolve the issue, the IDE should be opened at the root directory of the Vue project, where the babel.config.js file is located.