Extension complaining Terraform CLI is not installed when it is

I installed v2.9.1 of the extension. When VSCode window launches, I get the notification:

Terraform (CLI) is required. Please install Terraform or make it available in $PATH

However, I have terraform installed to /usr/local/bin which is in both my $PATH and in $PATH for root, so I don’t know why it reports it as not being there

# ls -l `which terraform`
-rwxr-xr-x 1 n0304144 82171776 Jan  6 14:21 /usr/local/bin/terraform

[rdsedmundo]

I installed Terraform using brew.

I actually did a couple of tests now by quitting VSCode completely (force quit via Activity Monitor) then tried to open it via Spotlight and also via Dock. Both ways worked and Terraform was recognized. So, in my case, this is only an issue when the MacOS restores the system.

Seems like someone reported something along those lines, but unfortunately it was closed without resolution: https://github.com/microsoft/vscode/issues/44060

[aeschright]

It’s puzzling that downgrading the extension addressed the issue for you – the error you’re seeing is coming from the language server, which is on its own release cycle. Here’s the discussion from a similar issue that was reported: https://github.com/hashicorp/vscode-terraform/issues/552#issuecomment-775037784

Can we give this a try? Set the Terraform path manually in the extension settings and upgrade to the newest extension version.