Restoring interactive notebooks functionality in VSCode (currently not working)

[eosfor]

xtension started for VS Code Stable.
tool-uninstall: Executing [dotnet tool uninstall Microsoft.dotnet-interactive] in 'c:\Users\av\AppData\Roaming\Code\User\globalStorage\ms-dotnettools.dotnet-interactive-vscode'.
tool-uninstall: Finished with code 0.
tool-uninstall: STDOUT:
Tool 'microsoft.dotnet-interactive' was successfully uninstalled and removed from manifest file c:\Users\av\AppData\Roaming\Code\User\globalStorage\ms-dotnettools.dotnet-interactive-vscode\.config\dotnet-tools.json.
tool-install: Executing [dotnet tool install --add-source https://pkgs.dev.azure.com/dnceng/public/_packaging/dotnet-tools/nuget/v3/index.json --ignore-failed-sources Microsoft.dotnet-interactive --version 1.0.520801] in 'c:\Users\av\AppData\Roaming\Code\User\globalStorage\ms-dotnettools.dotnet-interactive-vscode'.
tool-install: Finished with code 0.
tool-install: STDOUT:
You can invoke the tool from this directory using the following commands: 'dotnet tool run dotnet-interactive' or 'dotnet dotnet-interactive'.
Tool 'microsoft.dotnet-interactive' (version '1.0.520801') was successfully installed. Entry is added to the manifest file c:\Users\av\AppData\Roaming\Code\User\globalStorage\ms-dotnettools.dotnet-interactive-vscode\.config\dotnet-tools.json.
Started process 20884: dotnet tool run dotnet-interactive -- notebook-parser
Starting kernel for 'file:///c%3A/temp/scripting-notes/notebooks/en/vnet-topology-visualization.ipynb' using: dotnet tool run dotnet-interactive -- [vscode] stdio --working-dir c:\temp\scripting-notes\notebooks\en
Kernel for 'file:///c%3A/temp/scripting-notes/notebooks/en/vnet-topology-visualization.ipynb' started (1888).
process 20884 stderr: Unhandled exception. 
kernel (1888) stderr: Unhandled exception. 
process 20884 stderr: System.IO.FileNotFoundException: Could not load file or assembly 'System.CommandLine, Version=2.0.0.0, Culture=neutral, PublicKeyToken=31bf3856ad364e35'. The system cannot find the file specified.
File name: 'System.CommandLine, Version=2.0.0.0, Culture=neutral, PublicKeyToken=31bf3856ad364e35'
   at Microsoft.DotNet.Interactive.App.Program.Main(String[] args)
   at System.Runtime.CompilerServices.AsyncMethodBuilderCore.Start[TStateMachine](TStateMachine& stateMachine)
   at Microsoft.DotNet.Interactive.App.Program.Main(String[] args)
   at Microsoft.DotNet.Interactive.App.Program.<Main>(String[] args)

kernel (1888) stderr: System.IO.FileNotFoundException: Could not load file or assembly 'System.CommandLine, Version=2.0.0.0, Culture=neutral, PublicKeyToken=31bf3856ad364e35'. The system cannot find the file specified.
File name: 'System.CommandLine, Version=2.0.0.0, Culture=neutral, PublicKeyToken=31bf3856ad364e35'
   at Microsoft.DotNet.Interactive.App.Program.Main(String[] args)
   at System.Runtime.CompilerServices.AsyncMethodBuilderCore.Start[TStateMachine](TStateMachine& stateMachine)
   at Microsoft.DotNet.Interactive.App.Program.Main(String[] args)
   at Microsoft.DotNet.Interactive.App.Program.<Main>(String[] args)

Process 'dotnet' with PID 20884 exited with code 3762504530 and signal null
Started process 21484: dotnet tool run dotnet-interactive -- notebook-parser
Kernel for 'file:///c%3A/temp/scripting-notes/notebooks/en/vnet-topology-visualization.ipynb' ended (1888) with code 3762504530.
process 21484 stderr: Unhandled exception. 
process 21484 stderr: System.IO.FileNotFoundException: Could not load file or assembly 'System.CommandLine, Version=2.0.0.0, Culture=neutral, PublicKeyToken=31bf3856ad364e35'. The system cannot find the file specified.
File name: 'System.CommandLine, Version=2.0.0.0, Culture=neutral, PublicKeyToken=31bf3856ad364e35'
   at Microsoft.DotNet.Interactive.App.Program.Main(String[] args)
   at System.Runtime.CompilerServices.AsyncMethodBuilderCore.Start[TStateMachine](TStateMachine& stateMachine)
   at Microsoft.DotNet.Interactive.App.Program.Main(String[] args)
   at Microsoft.DotNet.Interactive.App.Program.<Main>(String[] args)

I even did delete and re-install vscode and polyglot extension - does not work

PS C:\tools> dotnet --info
.NET SDK:
 Version:           8.0.203
 Commit:            5e1ceea679
 Workload version:  8.0.200-manifests.4e94be9c

Runtime Environment:
 OS Name:     Windows
 OS Version:  10.0.22631
 OS Platform: Windows
 RID:         win-x64
 Base Path:   C:\Program Files\dotnet\sdk\8.0.203\

.NET workloads installed:
There are no installed workloads to display.

Host:
  Version:      8.0.3
  Architecture: x64
  Commit:       9f4b1f5d66

.NET SDKs installed:
  6.0.420 [C:\Program Files\dotnet\sdk]
  7.0.314 [C:\Program Files\dotnet\sdk]
  8.0.103 [C:\Program Files\dotnet\sdk]
  8.0.203 [C:\Program Files\dotnet\sdk]

.NET runtimes installed:
  Microsoft.AspNetCore.App 6.0.28 [C:\Program Files\dotnet\shared\Microsoft.AspNetCore.App]
  Microsoft.AspNetCore.App 7.0.17 [C:\Program Files\dotnet\shared\Microsoft.AspNetCore.App]
  Microsoft.AspNetCore.App 8.0.3 [C:\Program Files\dotnet\shared\Microsoft.AspNetCore.App]
  Microsoft.NETCore.App 6.0.28 [C:\Program Files\dotnet\shared\Microsoft.NETCore.App]
  Microsoft.NETCore.App 7.0.17 [C:\Program Files\dotnet\shared\Microsoft.NETCore.App]
  Microsoft.NETCore.App 8.0.3 [C:\Program Files\dotnet\shared\Microsoft.NETCore.App]
  Microsoft.WindowsDesktop.App 6.0.28 [C:\Program Files\dotnet\shared\Microsoft.WindowsDesktop.App]
  Microsoft.WindowsDesktop.App 7.0.17 [C:\Program Files\dotnet\shared\Microsoft.WindowsDesktop.App]
  Microsoft.WindowsDesktop.App 8.0.3 [C:\Program Files\dotnet\shared\Microsoft.WindowsDesktop.App]

Other architectures found:
  None

Environment variables:
  Not set

global.json file:
  Not found

Learn more:
  https://aka.ms/dotnet/info

Download .NET:
  https://aka.ms/dotnet/download

Originally posted by @eosfor in #3482 (comment)

[eosfor]

Looks like it is an issue with the latest version of the extension. I switched back to the previous version and it works