Azure Sphere SDK SSH error with Visual Studio Code

Question

I used to be able to ssh from my mac to my linux vm using the visual studio code ssh extension (ms-vscode-remote.remote-ssh) and use the azure sphere extension to target my azure sphere device just fine. With the latest upgrade, this feature seems to have broken and I get the following error whenever I try to target the device using this interface:

Warning: The current remote 'ssh-remote' is not supported. Debugging may not work correctly. Source: Azure Sphere (Extension)

I also see the following message in the output tab:

Error: Azure Sphere SDK was not found; builds will not work. Please download SDK via https://aka.ms/AzureSphereSDKDownload/Linux
Go to http://aka.ms/AzureSphereSDK/VisualStudioCode for installation and usage instructions.

I know I have the azure sphere sdk installed already, at the default location (/opt/azurespheresdk). I also confirmed I am still able to load applications on the device if I use visual studio code from my vm directly, and I am able to ssh from my mac and load an application on the device using the azure sphere command line interface just fine. However, these options are much more inconvenient, and I would really like to be able to use the VS code ssh feature with the azure sphere sdk again. Any suggestions on how to fix this issue are much appreciated.