nRF Connect Extension does not detect SDK Installation

[Aloysious Benoy]

I have an Ubuntu Machine where I successfully installed Zephyr SDK and toolchain following instructions given in the official getting started guide here.
I was able to compile the basic blinky firmware using this setup.

After this installed NCS in the same machine using the VS Code extension. I am unable to select the correct SDK location as the add build configuration screen only detects the zephyr installation I made and not the NCS SDK installation. 

The Manage SDK Menu correctly detects both SDK installations

The build fails when I try to build using the pure zephyr SDK. The build happens as expected when I set the correct SDK and toolchain as ENV vars in a terminal.

[Menon]

Hello,

This looks strange. I am on Windows, so I’m not exactly sure about this, and my colleagues who work with or know about Ubuntu are currently on vacation. Could you generate the support information from the VS Code extension? This might help identify the issue.

Also, try opening an application inside the SDK, such as:

Open an existing application--> SDK folder--> nrf/zephyr-->Any samples

This way, the SDK will be automatically selected by the build configuration.

Kind regards,
Abhijith

[Aloysious Benoy]

I have resolved the issue for now. I think the cause of the issue was that the project was a workspace application and was in the same folder as the Zephyr workspace folder. NCS showed up when I moved the application to the ncs folder (the parent folder where toolchain, SDK etc  are all present). Still does not fully explain why the extension did not detect the NCS installation. Is this the expected behaviour or a bug?