Word Web Add-in. Trying to add a context menu command, but I keep getting the error: This add-in is no longer available

Question

I am working on simple word web add-in, where I am trying to add a context menu command, but when I add the new extension point I get the following error, when I start the debug process:

"This add-in is no longer available: add-ins inserted during development are only available during debugging from Visual Studio. Please open your project in Visual Studio and re-run your application, or deploy your add-in into a valid catalog and re-insert." Below is my full manifest:

<?xml version="1.0" encoding="UTF-8" standalone="yes"?>
<OfficeApp xmlns="http://schemas.microsoft.com/office/appforoffice/1.1" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" xmlns:bt="http://schemas.microsoft.com/office/officeappbasictypes/1.0" xmlns:ov="http://schemas.microsoft.com/office/taskpaneappversionoverrides" xsi:type="TaskPaneApp">
  <Id>47bea749-a286-4236-b6ca-6afa62ce5f98</Id>
  <Version>1.0.0.0</Version>
  <ProviderName>Contoso</ProviderName>
  <DefaultLocale>en-US</DefaultLocale>
  <DisplayName DefaultValue="MyTestPluginCitationPluginWeb"/>
  <Description DefaultValue="A template to get started."/>
  <IconUrl DefaultValue="https://localhost:3000/assets/icon-32.png"/>
  <HighResolutionIconUrl DefaultValue="https://localhost:3000/assets/icon-64.png"/>
  <SupportUrl DefaultValue="https://www.contoso.com/help"/>
  <AppDomains>
    <AppDomain>https://www.contoso.com</AppDomain>
  </AppDomains>
  <Hosts>
    <Host Name="Document"/>
  </Hosts>
  <DefaultSettings>
    <SourceLocation DefaultValue="https://localhost:3000/taskpane.html"/>
  </DefaultSettings>
  <Permissions>ReadWriteDocument</Permissions>
  <VersionOverrides xmlns="http://schemas.microsoft.com/office/taskpaneappversionoverrides" xsi:type="VersionOverridesV1_0">
    <Hosts>
      <Host xsi:type="Document">
        <DesktopFormFactor>
          <GetStarted>
            <Title resid="GetStarted.Title"/>
            <Description resid="GetStarted.Description"/>
            <LearnMoreUrl resid="GetStarted.LearnMoreUrl"/>
          </GetStarted>
          <FunctionFile resid="Commands.Url"/>
          <ExtensionPoint xsi:type="PrimaryCommandSurface">
            <OfficeTab id="TabHome">
              <Group id="CommandsGroup">
                <Label resid="CommandsGroup.Label"/>
                <Icon>
                  <bt:Image size="16" resid="Icon.16x16"/>
                  <bt:Image size="32" resid="Icon.32x32"/>
                  <bt:Image size="80" resid="Icon.80x80"/>
                </Icon>
                <Control xsi:type="Button" id="TaskpaneButton">
                  <Label resid="TaskpaneButton.Label"/>
                  <Supertip>
                    <Title resid="TaskpaneButton.Label"/>
                    <Description resid="TaskpaneButton.Tooltip"/>
                  </Supertip>
                  <Icon>
                    <bt:Image size="16" resid="Icon.16x16"/>
                    <bt:Image size="32" resid="Icon.32x32"/>
                    <bt:Image size="80" resid="Icon.80x80"/>
                  </Icon>
                  <Action xsi:type="ShowTaskpane">
                    <TaskpaneId>ButtonId1</TaskpaneId>
                    <SourceLocation resid="Taskpane.Url"/>
                  </Action>
                </Control>
              </Group>
            </OfficeTab>
          </ExtensionPoint>
          <ExtensionPoint xsi:type="ContextMenu">
            <OfficeMenu id="ContextMenuText">
              <Control xsi:type="Menu" id="MyMenuId">
                <Label resid="Contoso.Menu.Label"/>
                <Supertip>
                  <Title resid="Contoso.Group1Label"/>
                  <Description resid="Contoso.Group1Label"/>
                </Supertip>
                <Icon>
                  <bt:Image size="16" resid="Icon.16x16"/>
                  <bt:Image size="32" resid="Icon.32x32"/>
                  <bt:Image size="80" resid="Icon.80x80"/>
                </Icon>
                <Items>
                  <Item id="myMenuId">
                    <Label resid="Contoso.Menu.Label"/>
                    <Supertip>
                      <Title resid="Contoso.Group1Label"/>
                      <Description resid="Contoso.Group1Label"/>
                    </Supertip>
                    <Icon>
                      <bt:Image size="16" resid="Icon.16x16"/>
                      <bt:Image size="32" resid="Icon.32x32"/>
                      <bt:Image size="80" resid="Icon.80x80"/>
                    </Icon>
                    <Action xsi:type="ExecuteFunction">
                      <FunctionName>action</FunctionName>
                    </Action>
                  </Item>
                </Items>
              </Control>
            </OfficeMenu>
          </ExtensionPoint>
        </DesktopFormFactor>
      </Host>
    </Hosts>
    <Resources>
      <bt:Images>
        <bt:Image id="Icon.16x16" DefaultValue="https://localhost:3000/assets/icon-16.png"/>
        <bt:Image id="Icon.32x32" DefaultValue="https://localhost:3000/assets/icon-32.png"/>
        <bt:Image id="Icon.80x80" DefaultValue="https://localhost:3000/assets/icon-80.png"/>
      </bt:Images>
      <bt:Urls>
        <bt:Url id="GetStarted.LearnMoreUrl" DefaultValue="https://go.microsoft.com/fwlink/?LinkId=276812"/>
        <bt:Url id="Commands.Url" DefaultValue="https://localhost:3000/commands.html"/>
        <bt:Url id="Taskpane.Url" DefaultValue="https://localhost:3000/taskpane.html"/>
      </bt:Urls>
      <bt:ShortStrings>
        <bt:String id="GetStarted.Title" DefaultValue="Get started with your sample add-in!"/>
        <bt:String id="CommandsGroup.Label" DefaultValue="Commands Group"/>
        <bt:String id="TaskpaneButton.Label" DefaultValue="Show Taskpane"/>
        <bt:String id="Contoso.TaskpaneButton.Label" DefaultValue="MyTestPlugin" />
        <bt:String id="Contoso.Group1Label" DefaultValue="MyTestPlugin" />
        <bt:String id="Contoso.GetStarted.Title" DefaultValue="MyTestPlugin" />
	<bt:String id="Contoso.Menu.Label" DefaultValue="MyTestPlugin" />
	<bt:String id="Contoso.MenuItem.Label" DefaultValue="Search for quote" />
      </bt:ShortStrings>
      <bt:LongStrings>
        <bt:String id="GetStarted.Description" DefaultValue="Your sample add-in loaded succesfully. Go to the HOME tab and click the 'Show Taskpane' button to get started."/>
        <bt:String id="TaskpaneButton.Tooltip" DefaultValue="Click to Show a Taskpane"/>
      </bt:LongStrings>
    </Resources>
  </VersionOverrides>
</OfficeApp>

as soon as I add this part, the addin fails to load

<ExtensionPoint xsi:type="ContextMenu">
            <OfficeMenu id="ContextMenuText">
              <Control xsi:type="Menu" id="MyMenuId">
                <Label resid="Contoso.Menu.Label"/>
                <Supertip>
                  <Title resid="Contoso.Group1Label"/>
                  <Description resid="Contoso.Group1Label"/>
                </Supertip>
                <Icon>
                  <bt:Image size="16" resid="Icon.16x16"/>
                  <bt:Image size="32" resid="Icon.32x32"/>
                  <bt:Image size="80" resid="Icon.80x80"/>
                </Icon>
                <Items>
                  <Item id="myMenuId">
                    <Label resid="Contoso.Menu.Label"/>
                    <Supertip>
                      <Title resid="Contoso.Group1Label"/>
                      <Description resid="Contoso.Group1Label"/>
                    </Supertip>
                    <Icon>
                      <bt:Image size="16" resid="Icon.16x16"/>
                      <bt:Image size="32" resid="Icon.32x32"/>
                      <bt:Image size="80" resid="Icon.80x80"/>
                    </Icon>
                    <Action xsi:type="ExecuteFunction">
                      <FunctionName>action</FunctionName>
                    </Action>
                  </Item>
                </Items>
              </Control>
            </OfficeMenu>
          </ExtensionPoint>

The commands.js file contains the following default command:

/**
 * Shows a notification when the add-in command is executed.
 * @param event {Office.AddinCommands.Event}
 */
function action(event) {
  const message = {
    type: Office.MailboxEnums.ItemNotificationMessageType.InformationalMessage,
    message: "Performed action.",
    icon: "Icon.80x80",
    persistent: true,
  };

I have validated the manifest and it says it's correct.

I have checked that all resids are available.

As soon as I remove the ExtensionPoint for ContextMenu, add-in shows up in Word. Any ideas?

I have tried developing the add in with Visual Studio 2022 and then moved over to Yeoman generator and Node.js environment and Visual Studio Code. Same results both times.

I have tried side loading the application with network share. I add the manifest to share folder without the ContextMenu ExtensionPoint. It works, but as soon as I add the ContextMenu ExtensionPoint, it again shows the error. What am I missing?