Unable to find the .NET Runtime binary without explicitly configuring it (Windows)

[eduarddejong]

VS Code version:
1.88.1 (user setup)

Operation System and version:
Windows 11

Steps to reproduce

Launch VS Code with this extension enabled.

Expected behavior

This extension should automatically be able to find the installed .NET Runtime.
Especially because it's also configured in the Windows PATH environment variable.

Actual behavior

A popup with the following message appears on startup:

An error occurred while installing .NET (8.0): .NET Acquisition Failed: Validation of .dotnet installation for version 8.0.4~x64 failed: Expected installation folder c:\Users\<user profile dir>\AppData\Roaming\Code\User\globalStorage\ms-dotnettools.vscode-dotnet-runtime\.dotnet\8.0.4~x64 does not exist.

Within that same message box VS Code also gives me the option to manually configure the path, which is great nevertheless.
When I do that selects the path C:\Program Files\dotnet\dotnet.exe, which is correct and everything works fine.
It adds the following to my Settings.json:

"dotnetAcquisitionExtension.existingDotnetPath": [
    {
        "extensionId": "icsharpcode.ilspy-vscode",
        "path": "C:\\Program Files\\dotnet\\dotnet.exe"
    }
],

Alright, this works for now. But is this really needed?
I suspect this isn't intended and something goes wrong here.

ilspy-vscode extension logs

[14:38:01.053] Checking for .NET runtime 8.0
[14:38:05.283] Check finished, runtime path is: (not available)
[14:38:05.283] Checking for additional runtime dependencies (Linux only)
[14:38:05.283] Check for additional dependencies finished

[Rpinski]

Sorry for the late response, but it looks like it's an issue with vscode-dotnet-runtime, which we use to detect and download .NET runtime. Such problems also appear with other extensions using it.

Those seem to be similar:

dotnet/vscode-dotnet-runtime#1684
dotnet/vscode-dotnet-runtime#1741