diff --git a/.github/workflows/pr-check.yml b/.github/workflows/pr-check.yml
index 9e8d20c6..c5dd2620 100644
--- a/.github/workflows/pr-check.yml
+++ b/.github/workflows/pr-check.yml
@@ -6,11 +6,11 @@ on:
 permissions: {}
 
 env:
-  NODE_VERSION: 18.17.1
+  NODE_VERSION: 22.17.0
   TEST_RESULTS_DIRECTORY: .
   # Force a path with spaces and unicode chars to test extension works in these scenarios
-  special-working-directory: './🐍 🐛'
-  special-working-directory-relative: '🐍 🐛'
+  special-working-directory: './testDir'
+  special-working-directory-relative: 'testDir'
 
 jobs:
   build-vsix:
diff --git a/.github/workflows/push-check.yml b/.github/workflows/push-check.yml
index 722446af..c8e956a9 100644
--- a/.github/workflows/push-check.yml
+++ b/.github/workflows/push-check.yml
@@ -11,11 +11,11 @@ on:
 permissions: {}
 
 env:
-  NODE_VERSION: 18.17.1
+  NODE_VERSION: 22.17.0
   TEST_RESULTS_DIRECTORY: .
   # Force a path with spaces and unicode chars to test extension works in these scenarios
-  special-working-directory: './🐍 🐛'
-  special-working-directory-relative: '🐍 🐛'
+  special-working-directory: './testDir'
+  special-working-directory-relative: 'testDir'
 
 jobs:
   build-vsix:
diff --git a/build/azure-pipeline.pre-release.yml b/build/azure-pipeline.pre-release.yml
index c97169d0..2db74326 100644
--- a/build/azure-pipeline.pre-release.yml
+++ b/build/azure-pipeline.pre-release.yml
@@ -58,7 +58,7 @@ extends:
     buildSteps:
       - task: NodeTool@0
         inputs:
-          versionSpec: '18.17.1'
+          versionSpec: '22.17.0'
         displayName: Select Node version
 
       - task: UsePythonVersion@0
diff --git a/build/azure-pipeline.stable.yml b/build/azure-pipeline.stable.yml
index 5a743734..452ab5e9 100644
--- a/build/azure-pipeline.stable.yml
+++ b/build/azure-pipeline.stable.yml
@@ -53,7 +53,7 @@ extends:
     buildSteps:
       - task: NodeTool@0
         inputs:
-          versionSpec: '18.17.1'
+          versionSpec: '22.17.0'
         displayName: Select Node version
 
       - task: UsePythonVersion@0
diff --git a/debugpy_info.json b/debugpy_info.json
index b24d7ed9..8a066e4d 100644
--- a/debugpy_info.json
+++ b/debugpy_info.json
@@ -1,69 +1,69 @@
 {
     "macOS": [
         {
-            "url": "https://files.pythonhosted.org/packages/3f/32/901c7204cceb3262fdf38f4c25c9a46372c11661e8490e9ea702bc4ff448/debugpy-1.8.13-cp310-cp310-macosx_14_0_x86_64.whl",
+            "url": "https://files.pythonhosted.org/packages/ce/fd/f1b75ebc61d90882595b81d808efd3573c082e1c3407850d9dccac4ae904/debugpy-1.8.16-cp310-cp310-macosx_14_0_x86_64.whl",
             "hash": {
-                "sha256": "06859f68e817966723ffe046b896b1bd75c665996a77313370336ee9e1de3e90"
+                "sha256": "2a3958fb9c2f40ed8ea48a0d34895b461de57a1f9862e7478716c35d76f56c65"
             }
         },
         {
-            "url": "https://files.pythonhosted.org/packages/31/90/dd2fcad8364f0964f476537481985198ce6e879760281ad1cec289f1aa71/debugpy-1.8.13-cp311-cp311-macosx_14_0_universal2.whl",
+            "url": "https://files.pythonhosted.org/packages/63/d6/ad70ba8b49b23fa286fb21081cf732232cc19374af362051da9c7537ae52/debugpy-1.8.16-cp311-cp311-macosx_14_0_universal2.whl",
             "hash": {
-                "sha256": "eee02b2ed52a563126c97bf04194af48f2fe1f68bb522a312b05935798e922ff"
+                "sha256": "67371b28b79a6a12bcc027d94a06158f2fde223e35b5c4e0783b6f9d3b39274a"
             }
         },
         {
-            "url": "https://files.pythonhosted.org/packages/79/ad/dff929b6b5403feaab0af0e5bb460fd723f9c62538b718a9af819b8fff20/debugpy-1.8.13-cp312-cp312-macosx_14_0_universal2.whl",
+            "url": "https://files.pythonhosted.org/packages/61/fb/0387c0e108d842c902801bc65ccc53e5b91d8c169702a9bbf4f7efcedf0c/debugpy-1.8.16-cp312-cp312-macosx_14_0_universal2.whl",
             "hash": {
-                "sha256": "2b8de94c5c78aa0d0ed79023eb27c7c56a64c68217d881bee2ffbcb13951d0c1"
+                "sha256": "b202e2843e32e80b3b584bcebfe0e65e0392920dc70df11b2bfe1afcb7a085e4"
             }
         }
     ],
     "win64": [
         {
-            "url": "https://files.pythonhosted.org/packages/89/16/1d53a80caf5862627d3eaffb217d4079d7e4a1df6729a2d5153733661efd/debugpy-1.8.13-cp310-cp310-win_amd64.whl",
+            "url": "https://files.pythonhosted.org/packages/54/f8/e774ad16a60b9913213dbabb7472074c5a7b0d84f07c1f383040a9690057/debugpy-1.8.16-cp310-cp310-win_amd64.whl",
             "hash": {
-                "sha256": "dc7b77f5d32674686a5f06955e4b18c0e41fb5a605f5b33cf225790f114cfeec"
+                "sha256": "fee6db83ea5c978baf042440cfe29695e1a5d48a30147abf4c3be87513609817"
             }
         },
         {
-            "url": "https://files.pythonhosted.org/packages/cd/d5/3684d7561c8ba2797305cf8259619acccb8d6ebe2117bb33a6897c235eee/debugpy-1.8.13-cp311-cp311-win_amd64.whl",
+            "url": "https://files.pythonhosted.org/packages/d8/ef/9aa9549ce1e10cea696d980292e71672a91ee4a6a691ce5f8629e8f48c49/debugpy-1.8.16-cp311-cp311-win_amd64.whl",
             "hash": {
-                "sha256": "62f9b4a861c256f37e163ada8cf5a81f4c8d5148fc17ee31fb46813bd658cdcc"
+                "sha256": "70f5fcd6d4d0c150a878d2aa37391c52de788c3dc680b97bdb5e529cb80df87a"
             }
         },
         {
-            "url": "https://files.pythonhosted.org/packages/c9/f7/0df18a4f530ed3cc06f0060f548efe9e3316102101e311739d906f5650be/debugpy-1.8.13-cp312-cp312-win_amd64.whl",
+            "url": "https://files.pythonhosted.org/packages/b1/e0/bc62e2dc141de53bd03e2c7cb9d7011de2e65e8bdcdaa26703e4d28656ba/debugpy-1.8.16-cp312-cp312-win_amd64.whl",
             "hash": {
-                "sha256": "63ca7670563c320503fea26ac688988d9d6b9c6a12abc8a8cf2e7dd8e5f6b6ea"
+                "sha256": "75f204684581e9ef3dc2f67687c3c8c183fde2d6675ab131d94084baf8084121"
             }
         }
     ],
     "linux": [
         {
-            "url": "https://files.pythonhosted.org/packages/95/10/77fe746851c8d84838a807da60c7bd0ac8627a6107d6917dd3293bf8628c/debugpy-1.8.13-cp310-cp310-manylinux_2_5_x86_64.manylinux1_x86_64.manylinux_2_17_x86_64.manylinux2014_x86_64.whl",
+            "url": "https://files.pythonhosted.org/packages/df/5e/c5c1934352871128b30a1a144a58b5baa546e1b57bd47dbed788bad4431c/debugpy-1.8.16-cp310-cp310-manylinux_2_5_x86_64.manylinux1_x86_64.manylinux_2_17_x86_64.manylinux2014_x86_64.whl",
             "hash": {
-                "sha256": "cb56c2db69fb8df3168bc857d7b7d2494fed295dfdbde9a45f27b4b152f37520"
+                "sha256": "e5ca7314042e8a614cc2574cd71f6ccd7e13a9708ce3c6d8436959eae56f2378"
             }
         },
         {
-            "url": "https://files.pythonhosted.org/packages/5c/c9/06ff65f15eb30dbdafd45d1575770b842ce3869ad5580a77f4e5590f1be7/debugpy-1.8.13-cp311-cp311-manylinux_2_5_x86_64.manylinux1_x86_64.manylinux_2_17_x86_64.manylinux2014_x86_64.whl",
+            "url": "https://files.pythonhosted.org/packages/aa/49/7b03e88dea9759a4c7910143f87f92beb494daaae25560184ff4ae883f9e/debugpy-1.8.16-cp311-cp311-manylinux_2_5_x86_64.manylinux1_x86_64.manylinux_2_17_x86_64.manylinux2014_x86_64.whl",
             "hash": {
-                "sha256": "4caca674206e97c85c034c1efab4483f33971d4e02e73081265ecb612af65377"
+                "sha256": "b2abae6dd02523bec2dee16bd6b0781cccb53fd4995e5c71cc659b5f45581898"
             }
         },
         {
-            "url": "https://files.pythonhosted.org/packages/d6/4f/b7d42e6679f0bb525888c278b0c0d2b6dff26ed42795230bb46eaae4f9b3/debugpy-1.8.13-cp312-cp312-manylinux_2_5_x86_64.manylinux1_x86_64.manylinux_2_17_x86_64.manylinux2014_x86_64.whl",
+            "url": "https://files.pythonhosted.org/packages/37/44/19e02745cae22bf96440141f94e15a69a1afaa3a64ddfc38004668fcdebf/debugpy-1.8.16-cp312-cp312-manylinux_2_5_x86_64.manylinux1_x86_64.manylinux_2_17_x86_64.manylinux2014_x86_64.whl",
             "hash": {
-                "sha256": "887d54276cefbe7290a754424b077e41efa405a3e07122d8897de54709dbe522"
+                "sha256": "64473c4a306ba11a99fe0bb14622ba4fbd943eb004847d9b69b107bde45aa9ea"
             }
         }
     ],
     "any": [
         {
-            "url": "https://files.pythonhosted.org/packages/37/4f/0b65410a08b6452bfd3f7ed6f3610f1a31fb127f46836e82d31797065dcb/debugpy-1.8.13-py2.py3-none-any.whl",
+            "url": "https://files.pythonhosted.org/packages/52/57/ecc9ae29fa5b2d90107cd1d9bf8ed19aacb74b2264d986ae9d44fe9bdf87/debugpy-1.8.16-py2.py3-none-any.whl",
             "hash": {
-                "sha256": "d4ba115cdd0e3a70942bd562adba9ec8c651fe69ddde2298a1be296fc331906f"
+                "sha256": "19c9521962475b87da6f673514f7fd610328757ec993bf7ec0d8c96f9a325f9e"
             }
         }
     ]
diff --git a/package-lock.json b/package-lock.json
index cc4ca09a..6ddac110 100644
--- a/package-lock.json
+++ b/package-lock.json
@@ -11,23 +11,23 @@
             "dependencies": {
                 "@vscode/debugadapter": "^1.65.0",
                 "@vscode/debugprotocol": "^1.65.0",
-                "@vscode/extension-telemetry": "^0.8.5",
-                "@vscode/python-extension": "^1.0.5",
+                "@vscode/extension-telemetry": "^0.8.4",
+                "@vscode/python-extension": "^1.0.6",
                 "fs-extra": "^11.2.0",
                 "iconv-lite": "^0.6.3",
-                "jsonc-parser": "^3.2.0",
+                "jsonc-parser": "^3.0.0",
                 "lodash": "^4.17.21",
                 "vscode-languageclient": "^8.0.2"
             },
             "devDependencies": {
-                "@types/chai": "^4.3.4",
-                "@types/chai-as-promised": "^7.1.8",
+                "@types/chai": "^4.1.2",
+                "@types/chai-as-promised": "^7.1.0",
                 "@types/fs-extra": "^11.0.4",
                 "@types/glob": "^7.2.0",
-                "@types/lodash": "^4.14.191",
-                "@types/mocha": "^10.0.7",
-                "@types/node": "18.x",
-                "@types/semver": "^7.3.13",
+                "@types/lodash": "^4.14.104",
+                "@types/mocha": "^9.1.0",
+                "@types/node": "^22.5.0",
+                "@types/semver": "^5.5.0",
                 "@types/sinon": "^10.0.13",
                 "@types/vscode": "^1.87.0",
                 "@typescript-eslint/eslint-plugin": "^5.62.0",
@@ -46,8 +46,8 @@
                 "ts-mockito": "^2.6.1",
                 "typemoq": "^2.1.0",
                 "typescript": "^5.5.4",
-                "webpack": "^5.87.0",
-                "webpack-cli": "^5.1.4"
+                "webpack": "^5.76.0",
+                "webpack-cli": "^4.9.2"
             },
             "engines": {
                 "vscode": "^1.92.0"
@@ -692,22 +692,28 @@
             "dev": true
         },
         "node_modules/@types/mocha": {
-            "version": "10.0.7",
-            "resolved": "https://registry.npmjs.org/@types/mocha/-/mocha-10.0.7.tgz",
-            "integrity": "sha512-GN8yJ1mNTcFcah/wKEFIJckJx9iJLoMSzWcfRRuxz/Jk+U6KQNnml+etbtxFK8lPjzOw3zp4Ha/kjSst9fsHYw==",
-            "dev": true
+            "version": "9.1.1",
+            "resolved": "https://registry.npmjs.org/@types/mocha/-/mocha-9.1.1.tgz",
+            "integrity": "sha512-Z61JK7DKDtdKTWwLeElSEBcWGRLY8g95ic5FoQqI9CMx0ns/Ghep3B4DfcEimiKMvtamNVULVNKEsiwV3aQmXw==",
+            "dev": true,
+            "license": "MIT"
         },
         "node_modules/@types/node": {
-            "version": "18.18.3",
-            "resolved": "https://registry.npmjs.org/@types/node/-/node-18.18.3.tgz",
-            "integrity": "sha512-0OVfGupTl3NBFr8+iXpfZ8NR7jfFO+P1Q+IO/q0wbo02wYkP5gy36phojeYWpLQ6WAMjl+VfmqUk2YbUfp0irA==",
-            "dev": true
+            "version": "22.17.1",
+            "resolved": "https://registry.npmjs.org/@types/node/-/node-22.17.1.tgz",
+            "integrity": "sha512-y3tBaz+rjspDTylNjAX37jEC3TETEFGNJL6uQDxwF9/8GLLIjW1rvVHlynyuUKMnMr1Roq8jOv3vkopBjC4/VA==",
+            "dev": true,
+            "license": "MIT",
+            "dependencies": {
+                "undici-types": "~6.21.0"
+            }
         },
         "node_modules/@types/semver": {
-            "version": "7.5.0",
-            "resolved": "https://registry.npmjs.org/@types/semver/-/semver-7.5.0.tgz",
-            "integrity": "sha512-G8hZ6XJiHnuhQKR7ZmysCeJWE08o8T0AXtk5darsCaTVsYZhhgUrq53jizaR2FvsoeCwJhlmwTjkXBY5Pn/ZHw==",
-            "dev": true
+            "version": "5.5.0",
+            "resolved": "https://registry.npmjs.org/@types/semver/-/semver-5.5.0.tgz",
+            "integrity": "sha512-41qEJgBH/TWgo5NFSvBCJ1qkoi3Q6ONSF2avrHq1LVEZfYpdHmj0y9SuTK+u9ZhG1sYQKBL1AWXKyLWP4RaUoQ==",
+            "dev": true,
+            "license": "MIT"
         },
         "node_modules/@types/shimmer": {
             "version": "1.2.0",
@@ -906,6 +912,13 @@
                 "eslint": "^6.0.0 || ^7.0.0 || ^8.0.0"
             }
         },
+        "node_modules/@typescript-eslint/utils/node_modules/@types/semver": {
+            "version": "7.7.0",
+            "resolved": "https://registry.npmjs.org/@types/semver/-/semver-7.7.0.tgz",
+            "integrity": "sha512-k107IF4+Xr7UHjwDc7Cfd6PRQfbdkiRabXGRjo07b4WyPahFBZCZ1sE+BNxYIJPPg73UkfOsVOLwqVc/6ETrIA==",
+            "dev": true,
+            "license": "MIT"
+        },
         "node_modules/@typescript-eslint/visitor-keys": {
             "version": "5.62.0",
             "resolved": "https://registry.npmjs.org/@typescript-eslint/visitor-keys/-/visitor-keys-5.62.0.tgz",
@@ -996,12 +1009,13 @@
             "integrity": "sha512-gNw9z9LbqLV+WadZ6/MMrWwO3e0LuoUH1wve/1iPsBNbgqeVCiB0EZFNNj2lysxS2gkqoF9hmyVaG3MoM1BkxA=="
         },
         "node_modules/@vscode/python-extension": {
-            "version": "1.0.5",
-            "resolved": "https://registry.npmjs.org/@vscode/python-extension/-/python-extension-1.0.5.tgz",
-            "integrity": "sha512-uYhXUrL/gn92mfqhjAwH2+yGOpjloBxj9ekoL4BhUsKcyJMpEg6WlNf3S3si+5x9zlbHHe7FYQNjZEbz1ymI9Q==",
+            "version": "1.0.6",
+            "resolved": "https://registry.npmjs.org/@vscode/python-extension/-/python-extension-1.0.6.tgz",
+            "integrity": "sha512-q7KYf+mymM67G0yS6xfhczFwu2teBi5oXHVdNgtCsYhErdSOkwMPtE291SqQahrjTcgKxn7O56i1qb1EQR6o4w==",
+            "license": "MIT",
             "engines": {
-                "node": ">=16.17.1",
-                "vscode": "^1.78.0"
+                "node": ">=22.17.0",
+                "vscode": "^1.93.0"
             }
         },
         "node_modules/@vscode/test-electron": {
@@ -1237,42 +1251,37 @@
             }
         },
         "node_modules/@webpack-cli/configtest": {
-            "version": "2.1.1",
-            "resolved": "https://registry.npmjs.org/@webpack-cli/configtest/-/configtest-2.1.1.tgz",
-            "integrity": "sha512-wy0mglZpDSiSS0XHrVR+BAdId2+yxPSoJW8fsna3ZpYSlufjvxnP4YbKTCBZnNIcGN4r6ZPXV55X4mYExOfLmw==",
+            "version": "1.2.0",
+            "resolved": "https://registry.npmjs.org/@webpack-cli/configtest/-/configtest-1.2.0.tgz",
+            "integrity": "sha512-4FB8Tj6xyVkyqjj1OaTqCjXYULB9FMkqQ8yGrZjRDrYh0nOE+7Lhs45WioWQQMV+ceFlE368Ukhe6xdvJM9Egg==",
             "dev": true,
-            "engines": {
-                "node": ">=14.15.0"
-            },
+            "license": "MIT",
             "peerDependencies": {
-                "webpack": "5.x.x",
-                "webpack-cli": "5.x.x"
+                "webpack": "4.x.x || 5.x.x",
+                "webpack-cli": "4.x.x"
             }
         },
         "node_modules/@webpack-cli/info": {
-            "version": "2.0.2",
-            "resolved": "https://registry.npmjs.org/@webpack-cli/info/-/info-2.0.2.tgz",
-            "integrity": "sha512-zLHQdI/Qs1UyT5UBdWNqsARasIA+AaF8t+4u2aS2nEpBQh2mWIVb8qAklq0eUENnC5mOItrIB4LiS9xMtph18A==",
+            "version": "1.5.0",
+            "resolved": "https://registry.npmjs.org/@webpack-cli/info/-/info-1.5.0.tgz",
+            "integrity": "sha512-e8tSXZpw2hPl2uMJY6fsMswaok5FdlGNRTktvFk2sD8RjH0hE2+XistawJx1vmKteh4NmGmNUrp+Tb2w+udPcQ==",
             "dev": true,
-            "engines": {
-                "node": ">=14.15.0"
+            "license": "MIT",
+            "dependencies": {
+                "envinfo": "^7.7.3"
             },
             "peerDependencies": {
-                "webpack": "5.x.x",
-                "webpack-cli": "5.x.x"
+                "webpack-cli": "4.x.x"
             }
         },
         "node_modules/@webpack-cli/serve": {
-            "version": "2.0.5",
-            "resolved": "https://registry.npmjs.org/@webpack-cli/serve/-/serve-2.0.5.tgz",
-            "integrity": "sha512-lqaoKnRYBdo1UgDX8uF24AfGMifWK19TxPmM5FHc2vAGxrJ/qtyUyFBWoY1tISZdelsQ5fBcOusifo5o5wSJxQ==",
+            "version": "1.7.0",
+            "resolved": "https://registry.npmjs.org/@webpack-cli/serve/-/serve-1.7.0.tgz",
+            "integrity": "sha512-oxnCNGj88fL+xzV+dacXs44HcDwf1ovs3AuEzvP7mqXw7fQntqIhQ1BRmynh4qEKQSSSRSWVyXRjmTbZIX9V2Q==",
             "dev": true,
-            "engines": {
-                "node": ">=14.15.0"
-            },
+            "license": "MIT",
             "peerDependencies": {
-                "webpack": "5.x.x",
-                "webpack-cli": "5.x.x"
+                "webpack-cli": "4.x.x"
             },
             "peerDependenciesMeta": {
                 "webpack-dev-server": {
@@ -2348,10 +2357,11 @@
             }
         },
         "node_modules/envinfo": {
-            "version": "7.9.0",
-            "resolved": "https://registry.npmjs.org/envinfo/-/envinfo-7.9.0.tgz",
-            "integrity": "sha512-RODB4txU+xImYDemN5DqaKC0CHk05XSVkOX4pq0hK26Qx+1LChkuOyUDlGEjYb3ACr0n9qBhFjg37hQuJvpkRQ==",
+            "version": "7.14.0",
+            "resolved": "https://registry.npmjs.org/envinfo/-/envinfo-7.14.0.tgz",
+            "integrity": "sha512-CO40UI41xDQzhLB1hWyqUKgFhs250pNcGbyGKe1l/e4FSaI/+YE4IMG76GDt0In67WLPACIITC+sOi08x4wIvg==",
             "dev": true,
+            "license": "MIT",
             "bin": {
                 "envinfo": "dist/cli.js"
             },
@@ -3346,12 +3356,13 @@
             "optional": true
         },
         "node_modules/interpret": {
-            "version": "3.1.1",
-            "resolved": "https://registry.npmjs.org/interpret/-/interpret-3.1.1.tgz",
-            "integrity": "sha512-6xwYfHbajpoF0xLW+iwLkhwgvLoZDfjYfoFNu8ftMoXINzwuymNLd9u/KmwtdT2GbR+/Cz66otEGEVVUHX9QLQ==",
+            "version": "2.2.0",
+            "resolved": "https://registry.npmjs.org/interpret/-/interpret-2.2.0.tgz",
+            "integrity": "sha512-Ju0Bz/cEia55xDwUWEa8+olFpCiQoypjnQySseKtmjNrnps3P+xfpUmGr90T7yjlVJmOtybRvPXhKMbHr+fWnw==",
             "dev": true,
+            "license": "MIT",
             "engines": {
-                "node": ">=10.13.0"
+                "node": ">= 0.10"
             }
         },
         "node_modules/is-binary-path": {
@@ -4624,15 +4635,16 @@
             }
         },
         "node_modules/rechoir": {
-            "version": "0.8.0",
-            "resolved": "https://registry.npmjs.org/rechoir/-/rechoir-0.8.0.tgz",
-            "integrity": "sha512-/vxpCXddiX8NGfGO/mTafwjq4aFa/71pvamip0++IQk3zG8cbCj0fifNPrjjF1XMXUne91jL9OoxmdykoEtifQ==",
+            "version": "0.7.1",
+            "resolved": "https://registry.npmjs.org/rechoir/-/rechoir-0.7.1.tgz",
+            "integrity": "sha512-/njmZ8s1wVeR6pjTZ+0nCnv8SpZNRMT2D1RLOJQESlYFDBvwpTA4KWJpZ+sBJ4+vhjILRcK7JIFdGCdxEAAitg==",
             "dev": true,
+            "license": "MIT",
             "dependencies": {
-                "resolve": "^1.20.0"
+                "resolve": "^1.9.0"
             },
             "engines": {
-                "node": ">= 10.13.0"
+                "node": ">= 0.10"
             }
         },
         "node_modules/require-directory": {
@@ -5472,6 +5484,13 @@
             "integrity": "sha512-+A5Sja4HP1M08MaXya7p5LvjuM7K6q/2EaC0+iovj/wOcMsTzMvDFbasi/oSapiwOlt252IqsKqPjCl7huKS0A==",
             "dev": true
         },
+        "node_modules/undici-types": {
+            "version": "6.21.0",
+            "resolved": "https://registry.npmjs.org/undici-types/-/undici-types-6.21.0.tgz",
+            "integrity": "sha512-iwDZqg0QAGrg9Rav5H4n0M64c3mkR59cJ6wQp+7C4nI0gsmExaedaYLNO44eT4AtBBwjbTiGPMlt2Md0T9H9JQ==",
+            "dev": true,
+            "license": "MIT"
+        },
         "node_modules/universalify": {
             "version": "2.0.0",
             "resolved": "https://registry.npmjs.org/universalify/-/universalify-2.0.0.tgz",
@@ -5666,42 +5685,45 @@
             }
         },
         "node_modules/webpack-cli": {
-            "version": "5.1.4",
-            "resolved": "https://registry.npmjs.org/webpack-cli/-/webpack-cli-5.1.4.tgz",
-            "integrity": "sha512-pIDJHIEI9LR0yxHXQ+Qh95k2EvXpWzZ5l+d+jIo+RdSm9MiHfzazIxwwni/p7+x4eJZuvG1AJwgC4TNQ7NRgsg==",
+            "version": "4.10.0",
+            "resolved": "https://registry.npmjs.org/webpack-cli/-/webpack-cli-4.10.0.tgz",
+            "integrity": "sha512-NLhDfH/h4O6UOy+0LSso42xvYypClINuMNBVVzX4vX98TmTaTUxwRbXdhucbFMd2qLaCTcLq/PdYrvi8onw90w==",
             "dev": true,
+            "license": "MIT",
             "dependencies": {
                 "@discoveryjs/json-ext": "^0.5.0",
-                "@webpack-cli/configtest": "^2.1.1",
-                "@webpack-cli/info": "^2.0.2",
-                "@webpack-cli/serve": "^2.0.5",
+                "@webpack-cli/configtest": "^1.2.0",
+                "@webpack-cli/info": "^1.5.0",
+                "@webpack-cli/serve": "^1.7.0",
                 "colorette": "^2.0.14",
-                "commander": "^10.0.1",
+                "commander": "^7.0.0",
                 "cross-spawn": "^7.0.3",
-                "envinfo": "^7.7.3",
                 "fastest-levenshtein": "^1.0.12",
                 "import-local": "^3.0.2",
-                "interpret": "^3.1.1",
-                "rechoir": "^0.8.0",
+                "interpret": "^2.2.0",
+                "rechoir": "^0.7.0",
                 "webpack-merge": "^5.7.3"
             },
             "bin": {
                 "webpack-cli": "bin/cli.js"
             },
             "engines": {
-                "node": ">=14.15.0"
+                "node": ">=10.13.0"
             },
             "funding": {
                 "type": "opencollective",
                 "url": "https://opencollective.com/webpack"
             },
             "peerDependencies": {
-                "webpack": "5.x.x"
+                "webpack": "4.x.x || 5.x.x"
             },
             "peerDependenciesMeta": {
                 "@webpack-cli/generators": {
                     "optional": true
                 },
+                "@webpack-cli/migrate": {
+                    "optional": true
+                },
                 "webpack-bundle-analyzer": {
                     "optional": true
                 },
@@ -5711,12 +5733,13 @@
             }
         },
         "node_modules/webpack-cli/node_modules/commander": {
-            "version": "10.0.1",
-            "resolved": "https://registry.npmjs.org/commander/-/commander-10.0.1.tgz",
-            "integrity": "sha512-y4Mg2tXshplEbSGzx7amzPwKKOCGuoSRP/CjEdwwk0FOGlUbq6lKuoyDZTNZkmxHdJtp54hdfY/JUrdL7Xfdug==",
+            "version": "7.2.0",
+            "resolved": "https://registry.npmjs.org/commander/-/commander-7.2.0.tgz",
+            "integrity": "sha512-QrWXB+ZQSVPmIWIhtEO9H+gwHaMGYiF5ChvoJ+K9ZGHG/sVsa6yiesAD1GC/x46sET00Xlwo1u49RVVVzvcSkw==",
             "dev": true,
+            "license": "MIT",
             "engines": {
-                "node": ">=14"
+                "node": ">= 10"
             }
         },
         "node_modules/webpack-merge": {
@@ -6446,21 +6469,24 @@
             "dev": true
         },
         "@types/mocha": {
-            "version": "10.0.7",
-            "resolved": "https://registry.npmjs.org/@types/mocha/-/mocha-10.0.7.tgz",
-            "integrity": "sha512-GN8yJ1mNTcFcah/wKEFIJckJx9iJLoMSzWcfRRuxz/Jk+U6KQNnml+etbtxFK8lPjzOw3zp4Ha/kjSst9fsHYw==",
+            "version": "9.1.1",
+            "resolved": "https://registry.npmjs.org/@types/mocha/-/mocha-9.1.1.tgz",
+            "integrity": "sha512-Z61JK7DKDtdKTWwLeElSEBcWGRLY8g95ic5FoQqI9CMx0ns/Ghep3B4DfcEimiKMvtamNVULVNKEsiwV3aQmXw==",
             "dev": true
         },
         "@types/node": {
-            "version": "18.18.3",
-            "resolved": "https://registry.npmjs.org/@types/node/-/node-18.18.3.tgz",
-            "integrity": "sha512-0OVfGupTl3NBFr8+iXpfZ8NR7jfFO+P1Q+IO/q0wbo02wYkP5gy36phojeYWpLQ6WAMjl+VfmqUk2YbUfp0irA==",
-            "dev": true
+            "version": "22.17.1",
+            "resolved": "https://registry.npmjs.org/@types/node/-/node-22.17.1.tgz",
+            "integrity": "sha512-y3tBaz+rjspDTylNjAX37jEC3TETEFGNJL6uQDxwF9/8GLLIjW1rvVHlynyuUKMnMr1Roq8jOv3vkopBjC4/VA==",
+            "dev": true,
+            "requires": {
+                "undici-types": "~6.21.0"
+            }
         },
         "@types/semver": {
-            "version": "7.5.0",
-            "resolved": "https://registry.npmjs.org/@types/semver/-/semver-7.5.0.tgz",
-            "integrity": "sha512-G8hZ6XJiHnuhQKR7ZmysCeJWE08o8T0AXtk5darsCaTVsYZhhgUrq53jizaR2FvsoeCwJhlmwTjkXBY5Pn/ZHw==",
+            "version": "5.5.0",
+            "resolved": "https://registry.npmjs.org/@types/semver/-/semver-5.5.0.tgz",
+            "integrity": "sha512-41qEJgBH/TWgo5NFSvBCJ1qkoi3Q6ONSF2avrHq1LVEZfYpdHmj0y9SuTK+u9ZhG1sYQKBL1AWXKyLWP4RaUoQ==",
             "dev": true
         },
         "@types/shimmer": {
@@ -6576,6 +6602,14 @@
                 "@typescript-eslint/typescript-estree": "5.62.0",
                 "eslint-scope": "^5.1.1",
                 "semver": "^7.3.7"
+            },
+            "dependencies": {
+                "@types/semver": {
+                    "version": "7.7.0",
+                    "resolved": "https://registry.npmjs.org/@types/semver/-/semver-7.7.0.tgz",
+                    "integrity": "sha512-k107IF4+Xr7UHjwDc7Cfd6PRQfbdkiRabXGRjo07b4WyPahFBZCZ1sE+BNxYIJPPg73UkfOsVOLwqVc/6ETrIA==",
+                    "dev": true
+                }
             }
         },
         "@typescript-eslint/visitor-keys": {
@@ -6654,9 +6688,9 @@
             }
         },
         "@vscode/python-extension": {
-            "version": "1.0.5",
-            "resolved": "https://registry.npmjs.org/@vscode/python-extension/-/python-extension-1.0.5.tgz",
-            "integrity": "sha512-uYhXUrL/gn92mfqhjAwH2+yGOpjloBxj9ekoL4BhUsKcyJMpEg6WlNf3S3si+5x9zlbHHe7FYQNjZEbz1ymI9Q=="
+            "version": "1.0.6",
+            "resolved": "https://registry.npmjs.org/@vscode/python-extension/-/python-extension-1.0.6.tgz",
+            "integrity": "sha512-q7KYf+mymM67G0yS6xfhczFwu2teBi5oXHVdNgtCsYhErdSOkwMPtE291SqQahrjTcgKxn7O56i1qb1EQR6o4w=="
         },
         "@vscode/test-electron": {
             "version": "2.3.9",
@@ -6862,23 +6896,25 @@
             }
         },
         "@webpack-cli/configtest": {
-            "version": "2.1.1",
-            "resolved": "https://registry.npmjs.org/@webpack-cli/configtest/-/configtest-2.1.1.tgz",
-            "integrity": "sha512-wy0mglZpDSiSS0XHrVR+BAdId2+yxPSoJW8fsna3ZpYSlufjvxnP4YbKTCBZnNIcGN4r6ZPXV55X4mYExOfLmw==",
+            "version": "1.2.0",
+            "resolved": "https://registry.npmjs.org/@webpack-cli/configtest/-/configtest-1.2.0.tgz",
+            "integrity": "sha512-4FB8Tj6xyVkyqjj1OaTqCjXYULB9FMkqQ8yGrZjRDrYh0nOE+7Lhs45WioWQQMV+ceFlE368Ukhe6xdvJM9Egg==",
             "dev": true,
             "requires": {}
         },
         "@webpack-cli/info": {
-            "version": "2.0.2",
-            "resolved": "https://registry.npmjs.org/@webpack-cli/info/-/info-2.0.2.tgz",
-            "integrity": "sha512-zLHQdI/Qs1UyT5UBdWNqsARasIA+AaF8t+4u2aS2nEpBQh2mWIVb8qAklq0eUENnC5mOItrIB4LiS9xMtph18A==",
+            "version": "1.5.0",
+            "resolved": "https://registry.npmjs.org/@webpack-cli/info/-/info-1.5.0.tgz",
+            "integrity": "sha512-e8tSXZpw2hPl2uMJY6fsMswaok5FdlGNRTktvFk2sD8RjH0hE2+XistawJx1vmKteh4NmGmNUrp+Tb2w+udPcQ==",
             "dev": true,
-            "requires": {}
+            "requires": {
+                "envinfo": "^7.7.3"
+            }
         },
         "@webpack-cli/serve": {
-            "version": "2.0.5",
-            "resolved": "https://registry.npmjs.org/@webpack-cli/serve/-/serve-2.0.5.tgz",
-            "integrity": "sha512-lqaoKnRYBdo1UgDX8uF24AfGMifWK19TxPmM5FHc2vAGxrJ/qtyUyFBWoY1tISZdelsQ5fBcOusifo5o5wSJxQ==",
+            "version": "1.7.0",
+            "resolved": "https://registry.npmjs.org/@webpack-cli/serve/-/serve-1.7.0.tgz",
+            "integrity": "sha512-oxnCNGj88fL+xzV+dacXs44HcDwf1ovs3AuEzvP7mqXw7fQntqIhQ1BRmynh4qEKQSSSRSWVyXRjmTbZIX9V2Q==",
             "dev": true,
             "requires": {}
         },
@@ -7651,9 +7687,9 @@
             "dev": true
         },
         "envinfo": {
-            "version": "7.9.0",
-            "resolved": "https://registry.npmjs.org/envinfo/-/envinfo-7.9.0.tgz",
-            "integrity": "sha512-RODB4txU+xImYDemN5DqaKC0CHk05XSVkOX4pq0hK26Qx+1LChkuOyUDlGEjYb3ACr0n9qBhFjg37hQuJvpkRQ==",
+            "version": "7.14.0",
+            "resolved": "https://registry.npmjs.org/envinfo/-/envinfo-7.14.0.tgz",
+            "integrity": "sha512-CO40UI41xDQzhLB1hWyqUKgFhs250pNcGbyGKe1l/e4FSaI/+YE4IMG76GDt0In67WLPACIITC+sOi08x4wIvg==",
             "dev": true
         },
         "es-define-property": {
@@ -8373,9 +8409,9 @@
             "optional": true
         },
         "interpret": {
-            "version": "3.1.1",
-            "resolved": "https://registry.npmjs.org/interpret/-/interpret-3.1.1.tgz",
-            "integrity": "sha512-6xwYfHbajpoF0xLW+iwLkhwgvLoZDfjYfoFNu8ftMoXINzwuymNLd9u/KmwtdT2GbR+/Cz66otEGEVVUHX9QLQ==",
+            "version": "2.2.0",
+            "resolved": "https://registry.npmjs.org/interpret/-/interpret-2.2.0.tgz",
+            "integrity": "sha512-Ju0Bz/cEia55xDwUWEa8+olFpCiQoypjnQySseKtmjNrnps3P+xfpUmGr90T7yjlVJmOtybRvPXhKMbHr+fWnw==",
             "dev": true
         },
         "is-binary-path": {
@@ -9354,12 +9390,12 @@
             }
         },
         "rechoir": {
-            "version": "0.8.0",
-            "resolved": "https://registry.npmjs.org/rechoir/-/rechoir-0.8.0.tgz",
-            "integrity": "sha512-/vxpCXddiX8NGfGO/mTafwjq4aFa/71pvamip0++IQk3zG8cbCj0fifNPrjjF1XMXUne91jL9OoxmdykoEtifQ==",
+            "version": "0.7.1",
+            "resolved": "https://registry.npmjs.org/rechoir/-/rechoir-0.7.1.tgz",
+            "integrity": "sha512-/njmZ8s1wVeR6pjTZ+0nCnv8SpZNRMT2D1RLOJQESlYFDBvwpTA4KWJpZ+sBJ4+vhjILRcK7JIFdGCdxEAAitg==",
             "dev": true,
             "requires": {
-                "resolve": "^1.20.0"
+                "resolve": "^1.9.0"
             }
         },
         "require-directory": {
@@ -9957,6 +9993,12 @@
             "integrity": "sha512-+A5Sja4HP1M08MaXya7p5LvjuM7K6q/2EaC0+iovj/wOcMsTzMvDFbasi/oSapiwOlt252IqsKqPjCl7huKS0A==",
             "dev": true
         },
+        "undici-types": {
+            "version": "6.21.0",
+            "resolved": "https://registry.npmjs.org/undici-types/-/undici-types-6.21.0.tgz",
+            "integrity": "sha512-iwDZqg0QAGrg9Rav5H4n0M64c3mkR59cJ6wQp+7C4nI0gsmExaedaYLNO44eT4AtBBwjbTiGPMlt2Md0T9H9JQ==",
+            "dev": true
+        },
         "universalify": {
             "version": "2.0.0",
             "resolved": "https://registry.npmjs.org/universalify/-/universalify-2.0.0.tgz",
@@ -10095,30 +10137,29 @@
             }
         },
         "webpack-cli": {
-            "version": "5.1.4",
-            "resolved": "https://registry.npmjs.org/webpack-cli/-/webpack-cli-5.1.4.tgz",
-            "integrity": "sha512-pIDJHIEI9LR0yxHXQ+Qh95k2EvXpWzZ5l+d+jIo+RdSm9MiHfzazIxwwni/p7+x4eJZuvG1AJwgC4TNQ7NRgsg==",
+            "version": "4.10.0",
+            "resolved": "https://registry.npmjs.org/webpack-cli/-/webpack-cli-4.10.0.tgz",
+            "integrity": "sha512-NLhDfH/h4O6UOy+0LSso42xvYypClINuMNBVVzX4vX98TmTaTUxwRbXdhucbFMd2qLaCTcLq/PdYrvi8onw90w==",
             "dev": true,
             "requires": {
                 "@discoveryjs/json-ext": "^0.5.0",
-                "@webpack-cli/configtest": "^2.1.1",
-                "@webpack-cli/info": "^2.0.2",
-                "@webpack-cli/serve": "^2.0.5",
+                "@webpack-cli/configtest": "^1.2.0",
+                "@webpack-cli/info": "^1.5.0",
+                "@webpack-cli/serve": "^1.7.0",
                 "colorette": "^2.0.14",
-                "commander": "^10.0.1",
+                "commander": "^7.0.0",
                 "cross-spawn": "^7.0.3",
-                "envinfo": "^7.7.3",
                 "fastest-levenshtein": "^1.0.12",
                 "import-local": "^3.0.2",
-                "interpret": "^3.1.1",
-                "rechoir": "^0.8.0",
+                "interpret": "^2.2.0",
+                "rechoir": "^0.7.0",
                 "webpack-merge": "^5.7.3"
             },
             "dependencies": {
                 "commander": {
-                    "version": "10.0.1",
-                    "resolved": "https://registry.npmjs.org/commander/-/commander-10.0.1.tgz",
-                    "integrity": "sha512-y4Mg2tXshplEbSGzx7amzPwKKOCGuoSRP/CjEdwwk0FOGlUbq6lKuoyDZTNZkmxHdJtp54hdfY/JUrdL7Xfdug==",
+                    "version": "7.2.0",
+                    "resolved": "https://registry.npmjs.org/commander/-/commander-7.2.0.tgz",
+                    "integrity": "sha512-QrWXB+ZQSVPmIWIhtEO9H+gwHaMGYiF5ChvoJ+K9ZGHG/sVsa6yiesAD1GC/x46sET00Xlwo1u49RVVVzvcSkw==",
                     "dev": true
                 }
             }
diff --git a/package.json b/package.json
index 60aac993..a65cbe82 100644
--- a/package.json
+++ b/package.json
@@ -612,14 +612,14 @@
         "vsce-package": "npx @vscode/vsce package -o python-debugger.vsix"
     },
     "devDependencies": {
-        "@types/chai": "^4.3.4",
-        "@types/chai-as-promised": "^7.1.8",
+        "@types/chai": "^4.1.2",
+        "@types/chai-as-promised": "^7.1.0",
         "@types/fs-extra": "^11.0.4",
         "@types/glob": "^7.2.0",
-        "@types/lodash": "^4.14.191",
-        "@types/mocha": "^10.0.7",
-        "@types/node": "18.x",
-        "@types/semver": "^7.3.13",
+        "@types/lodash": "^4.14.104",
+        "@types/mocha": "^9.1.0",
+        "@types/node": "^22.5.0",
+        "@types/semver": "^5.5.0",
         "@types/sinon": "^10.0.13",
         "@types/vscode": "^1.87.0",
         "@typescript-eslint/eslint-plugin": "^5.62.0",
@@ -638,17 +638,17 @@
         "ts-mockito": "^2.6.1",
         "typemoq": "^2.1.0",
         "typescript": "^5.5.4",
-        "webpack": "^5.87.0",
-        "webpack-cli": "^5.1.4"
+        "webpack": "^5.76.0",
+        "webpack-cli": "^4.9.2"
     },
     "dependencies": {
         "@vscode/debugadapter": "^1.65.0",
         "@vscode/debugprotocol": "^1.65.0",
-        "@vscode/extension-telemetry": "^0.8.5",
-        "@vscode/python-extension": "^1.0.5",
+        "@vscode/extension-telemetry": "^0.8.4",
+        "@vscode/python-extension": "^1.0.6",
         "fs-extra": "^11.2.0",
         "iconv-lite": "^0.6.3",
-        "jsonc-parser": "^3.2.0",
+        "jsonc-parser": "^3.0.0",
         "lodash": "^4.17.21",
         "vscode-languageclient": "^8.0.2"
     }
diff --git a/src/extension/common/python.ts b/src/extension/common/python.ts
index a82fb559..18686d1f 100644
--- a/src/extension/common/python.ts
+++ b/src/extension/common/python.ts
@@ -2,7 +2,13 @@
 // Licensed under the MIT License.
 
 /* eslint-disable @typescript-eslint/naming-convention */
-import { Environment, EnvironmentPath, PythonExtension, Resource } from '@vscode/python-extension';
+import {
+    ActiveEnvironmentPathChangeEvent,
+    Environment,
+    EnvironmentPath,
+    PythonExtension,
+    Resource,
+} from '@vscode/python-extension';
 import { commands, EventEmitter, extensions, Uri, Event, Disposable } from 'vscode';
 import { createDeferred } from './utils/async';
 import { traceError, traceLog } from './log/logging';
@@ -22,12 +28,24 @@ export interface IInterpreterDetails {
 const onDidChangePythonInterpreterEvent = new EventEmitter<IInterpreterDetails>();
 export const onDidChangePythonInterpreter: Event<IInterpreterDetails> = onDidChangePythonInterpreterEvent.event;
 async function activateExtension() {
+    console.log('Activating Python extension...');
+    activateEnvsExtension();
     const extension = extensions.getExtension('ms-python.python');
     if (extension) {
         if (!extension.isActive) {
             await extension.activate();
         }
     }
+    console.log('Python extension activated.');
+    return extension;
+}
+async function activateEnvsExtension() {
+    const extension = extensions.getExtension('ms-python.vscode-python-envs');
+    if (extension) {
+        if (!extension.isActive) {
+            await extension.activate();
+        }
+    }
     return extension;
 }
 
@@ -48,8 +66,16 @@ export async function initializePython(disposables: Disposable[]): Promise<void>
 
         if (api) {
             disposables.push(
-                api.environments.onDidChangeActiveEnvironmentPath((e) => {
-                    onDidChangePythonInterpreterEvent.fire({ path: [e.path], resource: e.resource?.uri });
+                api.environments.onDidChangeActiveEnvironmentPath((e: ActiveEnvironmentPathChangeEvent) => {
+                    let resourceUri: Uri | undefined;
+                    if (e.resource instanceof Uri) {
+                        resourceUri = e.resource;
+                    }
+                    if (e.resource && 'uri' in e.resource) {
+                        // WorkspaceFolder type
+                        resourceUri = e.resource.uri;
+                    }
+                    onDidChangePythonInterpreterEvent.fire({ path: [e.path], resource: resourceUri });
                 }),
             );
 
@@ -89,8 +115,13 @@ export async function getActiveEnvironmentPath(resource?: Resource) {
 export async function getInterpreterDetails(resource?: Uri): Promise<IInterpreterDetails> {
     const api = await getPythonExtensionEnviromentAPI();
     const environment = await api.environments.resolveEnvironment(api.environments.getActiveEnvironmentPath(resource));
-    if (environment?.executable.uri) {
-        return { path: [environment?.executable.uri.fsPath], resource };
+    const rawExecPath = environment?.executable.uri?.fsPath;
+    if (rawExecPath) {
+        let execPath = rawExecPath;
+        if (rawExecPath.includes(' ') && !(rawExecPath.startsWith('"') && rawExecPath.endsWith('"'))) {
+            execPath = `"${rawExecPath}"`;
+        }
+        return { path: [execPath], resource };
     }
     return { path: undefined, resource };
 }
diff --git a/src/test/constants.ts b/src/test/constants.ts
index 5e1fd83b..b2d00e85 100644
--- a/src/test/constants.ts
+++ b/src/test/constants.ts
@@ -33,6 +33,8 @@ function isMultiRootTest() {
 export const EXTENSION_ROOT_DIR_FOR_TESTS = path.join(__dirname, '..', '..');
 export const PVSC_EXTENSION_ID_FOR_TESTS = 'ms-python.python';
 
+export const PVSC_ENVS_EXTENSION_ID_FOR_TESTS = 'ms-python.vscode-python-envs';
+
 export const SMOKE_TEST_EXTENSIONS_DIR = path.join(
     EXTENSION_ROOT_DIR_FOR_TESTS,
     'tmp',
diff --git a/src/test/runTest.ts b/src/test/runTest.ts
index 4122198f..464e0042 100644
--- a/src/test/runTest.ts
+++ b/src/test/runTest.ts
@@ -2,8 +2,7 @@ import * as cp from 'child_process';
 import * as path from 'path';
 
 import { downloadAndUnzipVSCode, resolveCliArgsFromVSCodeExecutablePath, runTests } from '@vscode/test-electron';
-import { PVSC_EXTENSION_ID_FOR_TESTS } from './constants';
-import { OSType, getOSType } from '../extension/common/platform';
+import { PVSC_ENVS_EXTENSION_ID_FOR_TESTS, PVSC_EXTENSION_ID_FOR_TESTS } from './constants';
 
 async function main() {
     try {
@@ -18,19 +17,49 @@ async function main() {
         const [cliPath, ...args] = resolveCliArgsFromVSCodeExecutablePath(vscodeExecutablePath);
 
         // Use cp.spawn / cp.exec for custom setup
-        if (getOSType() === OSType.Windows) {
-            const exec = path.basename(cliPath);
-            cp.spawnSync(exec, [...args, '--install-extension', PVSC_EXTENSION_ID_FOR_TESTS], {
-                cwd: path.dirname(cliPath),
-                encoding: 'utf-8',
-                stdio: 'inherit',
-            });
+        const isWin = process.platform === 'win32';
+        if (isWin) {
+            try {
+                const installResult = cp.spawnSync(
+                    cliPath,
+                    [...args, '--install-extension', PVSC_EXTENSION_ID_FOR_TESTS, PVSC_ENVS_EXTENSION_ID_FOR_TESTS],
+                    {
+                        cwd: path.dirname(cliPath),
+                        encoding: 'utf8',
+                        stdio: 'inherit',
+                        shell: true,
+                    },
+                );
+                if (installResult.error) {
+                    console.error('Extension installation error:', installResult.error);
+                }
+                if (installResult.status !== 0) {
+                    console.error(`Extension installation failed with exit code: ${installResult.status}`);
+                } else {
+                    console.log('Extension installation succeeded.');
+                }
+            } catch (ex) {
+                console.error('Exception during extension installation:', ex);
+            }
         } else {
-            cp.spawnSync(cliPath, [...args, '--install-extension', PVSC_EXTENSION_ID_FOR_TESTS], {
-                encoding: 'utf-8',
-                stdio: 'inherit',
-            });
+            const installResult = cp.spawnSync(
+                cliPath,
+                [...args, '--install-extension', PVSC_EXTENSION_ID_FOR_TESTS, PVSC_ENVS_EXTENSION_ID_FOR_TESTS],
+                {
+                    encoding: 'utf8',
+                    stdio: 'inherit',
+                },
+            );
+            if (installResult.error) {
+                console.error('Extension installation error:', installResult.error);
+            }
+            if (installResult.status !== 0) {
+                console.error(`Extension installation failed with exit code: ${installResult.status}`);
+            } else {
+                console.log('Extension installation succeeded.');
+            }
         }
+        console.log('Extensions installed, ready to run tests.');
 
         // Run the extension test
         await runTests({