Can't open sample project in VS Code

Hello, I am trying to load a sample project in VS Code using the nRF Connect SDK extension.

I try to load a sample project, click on "Create Application", and nothing happens.  I looked on the message board and saw a comment to toggle the Develop Tools and I get the following error when I try to create the application:

This is how I tried to set it up:

Any suggestions on how to remove the error and create the application?

thanks,
Justin

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