nrf Connect SDK Issues with west.yml workspaces in VS Code

I am trying to add s2opc to my project. But everytime i try to open the complete Workspace in VSCode, the nrf Connect extension, just does nothing.

How to reproduce. Take the blinky example, make it a git repo, create a west.yml file looking like this:

manifest:
  remotes:
    - name: ncs
      url-base: https://github.com/nrfconnect

  projects:
    - name: nrf
      remote: ncs
      repo-path: sdk-nrf
      revision: v2.7.0
      import: true

    - name: s2opc
      groups:
        - s2opc
      path: deps/modules/lib/s2opc
      revision: master
      url: [email protected]:systerel/S2OPC.git


  self:
    path: app


Now do a west init -m <git clone url>
West update, west zephyr export, pip install all the required requirements etc...

If i now open the app folder or the overarching folder containing the nrf sdk and zephyr, the VSCode extension just spins indefinetly. Sometimes it works, by just opening the app folder, but then it still fails to compile, something that is easily reproducable on the command line.

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