Debugged extensions not activating

[code-asher]

When you debug an extension it opens a new window with that extension active. However, the extension appears to be completely missing in the new window, even though the debugger appears to be logging a connection. It works as expected in Codespaces.

Discussed in #7423

^{Originally posted by ForceConstant July 16, 2025}
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?