Jupyter Kernel `ms-toolsai.jupyter` cause `.py` code folding to disappear

Applies To

• Notebooks (.ipynb files)
• Interactive Window and/or Cell Scripts (.py files with #%% markers)

What happened?

Enabling the ms-toolsai.jupyter extensions in VSCode 1.72.2 cause code folding to disappear in ordinary .py files. See https://github.com/microsoft/vscode/issues/163978

I use ms-toolsai.jupyter version v2022.9.1202862440.

VS Code Version

Extension	Author (truncated)	Version
better-comments	aar	3.0.2
auto-dark-mode-windows	dan	1.0.11
vscode-markdownlint	Dav	0.48.1
git-graph	mhu	1.30.0
python	ms-	2022.16.1
jupyter	ms-	2022.9.1202862440
jupyter-keymap	ms-	1.0.0
jupyter-renderers	ms-	1.0.10
vscode-jupyter-cell-tags	ms-	0.1.6
vscode-jupyter-slideshow	ms-	0.1.5
autodocstring	njp	0.6.1
indent-rainbow	ode	8.3.1
intellicode-api-usage-examples	Vis	0.2.5
vscodeintellicode	Vis	1.2.28

Jupyter Extension Version

v2022.9.1202862440

Jupyter logs

No response

Coding Language and Runtime Version

Python 3.7

Language Extension Version (if applicable)

No response

Anaconda Version (if applicable)

Running Jupyter locally or remotely?

Local

[yasirroni]

Using VSCode manual version install as explained in https://stackoverflow.com/questions/42626065/vs-code-how-to-rollback-extension-install-specific-extension-version, the last working version without this bug is v2022.8.1002431955.

Since problem is not fixed yet, you can downgrade (and automatically stop auto update) to v2022.8.1002431955 guys.

[ravimulpuri]

I have the same issue as well. Unless I disable jupyter extension, I don’t get folding for python files