After the update to extension version 2025.8.654, the extension can no longer find the nRF SDK in my west workspace in the build configuration. If I revert to extension v2025.4.106., then the build configure shows nRF Connect SDK v3.1.0 as the SDK as expected.
I am using a west workspace with the following folder structure
ZephyrTemplate/
- Code/
- .west/config
- external/
- bootloader
- modules
- nrf
- nrfxlib
- test
- tools
- zephyr
- hw_support/boards
- applications
- appA
- west.yml
- CMakeLists.txt
- Kconfig
- Kconfig.sysbuild
- prj.conf
-sysbuild.conf
- src/
- main.c
- sysbuild/
- mcuboot.conf
- mcuboot.overlay
- appB
The appA west.yml looks like this:
manifest:
self:
path: Code
remotes:
- name: nrf
url-base: https://github.com/nrfconnect
- name: ds
url-base: https://github.com/My-Company/
projects:
- name: sdk-nrf
remote: nrf
path: nrf
revision: v3.1.0
import:
path-prefix: external
clone-depth: 1
- name: MyCompany-ZephyrModules-board_baselines
remote: ds
path: hw_support
revision: v0.1.1
clone-depth: 1
The .west/config file look like:
[manifest] path = applications/appA file = west.yml [zephyr] base = external/zephyr
The nRF connect extension is configured to set the board root to ${ZEPHYR_BASE}../../hw_support.
Using the nRF connect extension, I open appA as an existing application and run west update.
When I add the build configuration, instead of finding nRF Connect SDK v3.1.0 in the ZephyrTemplate/external folder, it sets the SDK to 3rd Party v1.0.0.

It is still able to configure and build. However the extension does not recognize that is built successfully and requires a pristine build. When I click the button to do a pristine build, I get the error "Failed to determine build parameters".
Interestingly, if I revert the extension version with the build directory still present, the extension correctly detects the build configuration.
What do I need to do in the v2025.8.654 extension update to get the extension to find the nRF connect SDK in the west workspace?