I have been trying to fix this issue now for a while. I tried everything, uninstall/reinstalling Azure CLI tools extension, uninstalling/reinstalling vscode, but whenever I create a new .azcli or open an existing one, I get this message

az cli is already in path on all terminals:



In vscode Developer Tools these errors are logged while trying to activate the azure cli tools extension - attached the log file for your reference as well:

I am stuck and I don't know how to go about this issue. Can you please help?
vscode-app-1723701074763.log