Help on VTEB - VANGUARD TAX-EXEMPT BOND

So I'm a bit cash heavy because if I move jobs I'll need I will want to purchase a house in cash. I'm thinking of moving half out of a HYSA to VTEB - VANGUARD TAX-EXEMPT BOND fund. My understanding is that I will have to manually pull out the dividends during tax time to exclude them from taxes. I assume I can just set the dividends to reinvest without any problems? Anything else I need to consider?