interactive: VSC cannot open notebook

Describe the bug

When trying to open an existing, previously functioning notebook, VSC reports:

Cannot open resource with notebook editor type ‘dotnet-interactive’, please check if you have the right extension installed or enabled.

Please complete the following:

Which version of .NET Interactive are you using? There are a few ways to find this out:

When I run dotnet interactive --version. I get not installed. Reinstalling the extension and restarting the terminal gives the same result.

• OS
  • Windows 11
  • Windows 10
  • macOS
  • Linux (Please specify distro)
  • iOS
  • Android
• Browser
  • Chrome
  • Edge
  • Firefox
  • Safari
• Frontend
  • Jupyter Notebook
  • Jupyter Lab
  • nteract
  • Visual Studio Code
  • Visual Studio Code Insiders
  • Other (please specify)

Screenshots

If applicable, add screenshots to help explain your problem.