Latest nRF connect for VS code seems to ignore Toolchain manager install dir under certain conditions.
nRF connect output displays "Error: Install directory 'C:\ncs' not found" while the toolchain dir is set to somewhere else in settings.
Note that this is the first line, there will be TONS of other related error messages.
This also prevents projects from being build ([west]: exited with code -4058).
You also get a funny UI bug where it displays ?.?.? instead of SDK version.
If you try to install a toolchain or SDK, it is put into the user configured folder properly - but still unusable until you apply fix below.
Fix is somewhat sketchy: In file
%USERPROFILE%\.vscode\extensions\nordic-semiconductor.nrf-connect-2026.3.1484-win32-x64\platform\nrfutil\config\nrfutil-sdk-manager\config.json
change the install_dir from null to the correct dir (with quotation and double backslash).
VS code now works normally after application restart.
Can't figure out exact trigger conditions - only one of my 2 machines here was affected.
