In order to even get SQLMesh commands to work in the command palette, I need to go to the sub-folder where the SQLMesh project lives and type code . in the CLI to get the SQLMesh commands to even be recognized.
I did not troubleshoot to determine whether the problem is (a) the VS Code workspaces, or the fact that I have a monorepo and the SQLMesh folder is not at the top level of the repo. I can dig in a little further if this is needed.