Problems with the VSCode Extension being unable to find the nRF Connect SDK after update to the extension.

After an update recently with the nRF Connect for VSCode Extension, it's been unable to find where my nRF Connect SDK is located when choosing a build configuration. It used to find the ones located at /home/{user}/ncs/, but no longer did that afterwards. The only option was a Zephyr workspace that happened to be in a parent directory (the dropdown menu for SDK in the build configuration only gave "Zephyr" as an option and no nRF Connect SDK). Upon further investigation I realized that I had to create the project within the west workspace directory to use the nRF Connect SDK, but I needed to be able to select it from outside the ncs directory.

I tried clicking on "Manage SDKs" and changing the west workspace to the /home/{user}/ncs directory, but it didn't allow me to. It wasn't able to recognize the west.yml file there. It kept looking for a west.yml file in the same location.

I found a temporary fix by doing the following:

  1. Downgraded to version 2024.9.5
  2. Deleted all the other Zephyr directories that were interfering*.
  3. Went to settings > nrf-connect > Nrfutil: Home and added /home/{user}/ncs.
  4. Clicked on Manage SDKs > manage west workspace and selected nrf v2.9.0 in both the sections “set west manifest repository” and “west update > settings cog icon”.
  5. Closed the manage SDKs menu and clicked on the refresh icon on the manage SDKs button.

But I still don't understand what's causing the issue and what the proper fix is. Please help.

* Otherwise it would look for a west workspace in the same location again and again and give the following error:

[west]: FATAL ERROR: no west workspace found from "/home/{user}/projects/{my_project}"; "west list" requires one.
[west]: Things to try:
[west]: - Change directory to somewhere inside a west workspace and retry.
[west]: - Set ZEPHYR_BASE to a zephyr repository path in a west workspace.
[west]: - Run "west init" to set up a workspace here.
[west]: - Run "west init -h" for additional information.

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