VS does not launch from Toolchain manager on a MAC

Using a MAC running Monterey, VS code runs from command line on a terminal window from everywhere. When clicking on the "Open VS Code" button from the toolchain manager it says "VS not detected on your system..."

Tried everything I could find online. and SDKs from 1.9.1 up to 2.1.0-rc2.

If launching VS Code I can compile and run sample code on the DK, although not everything works, like Kconfig not found.

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