VS Studio Code - OpenHab Extension - incorrect setup?

I’m pretty new on this: running OpenHab 2.2 on RaspPI with manual installation, and trying to use VS Code Studio to edit the config files. Running VSCS 1.19.2 , OpenHab extension 0.3.5 on W10.

I have shared the folder “/etc/openhab2” on the RaspPI and opened the folder in VSCS, and modified the "User Setting openhab.host to the corret IP address (192.186.X.X).

If I create a new OpenHab file within VSCS the intellisense works as expected, all items etc. that I have setup within PaperUI comes up, so I assume that the REST API connection works as intended.

However, what I do not get within the VSCS is the Tree view of my items (hence no code snippets etc.), and I don’t see the “openhab” button to load preview of the sitemaps etc.
As I’m pretty new to all of this I don’t fully know what to expect, and have only seen how it “should work” from online demo videos and images.
I am suspecting that path for the config files is incorrect and therefore the Openhab Extension does not “kick in”, but I could be completely wrong…

Any help or direction to where I should read to get a better understanding would be very helpful. I have tried to get this to work for several evenings but only made tiny progress…

I’m pretty new to VSC myself so this is a long shot. Make sure you have the setting for userestapi set to true. True is the default but I had set it to false at one point as it likes to drive my OH instance CPU to 100%.

// Connects to openHAB REST API if set to true. If not, Items tree view and code completions are disabled.
  "openhab.useRestApi": true,

I have the following three things configured in my workspace file (which resides on the OH directory. I have a couple of installs so this allows me to change IP for each LSP):

“openhab.useRestApi”: true,
“openhab.host”: “a.b.c.d.e”,
“openhab.lspEnabled”: true

Thank you for your advice, but I have checked and all settings are as per default values, and moving the host IP from the User settings to Workspace settings did not change anything.

Not sure if it matters, but I also notice that if I set the Language Mode within VSCS to Openhab, save and restart, it’s changed back to plain text again.