Having trouble debug extension, is my setup wrong, or something with extension?

[ForceConstant]

I am simply following https://code.visualstudio.com/api/get-started/your-first-extension and hit "Debug: Start Debugging" a new window opens up and debugger is happy, but I do not see the new extension in the new code-server that opens. Has anyone done this recently, and if so what do I need to do?

[code-asher]

I confirmed it works in Codespaces so it looks like a bug on our end. Not sure what it could be, but I will create an issue.

Edit: created #7425