Deprecated "punycode" module shows error in log file

Got an error in the log file:

2026-07-08 07:58:43.014 [error] [Window] [Extension Host] (node:2420) [DEP0040] DeprecationWarning: The `punycode` module is deprecated. Please use a userland alternative instead.
(Use `Code --trace-deprecation ...` to show where the warning was created)

2026-07-08 07:58:45.578 [warning] [Window] [mainThreadStorage] large extension state detected (extensionId: halcyontechltd.vscode-db2i, global: true): 1938.365234375kb. Consider to use 'storageUri' or 'globalStorageUri' to store this data on disk instead.

2026-07-08 07:58:46.563 [error] [Window] An unknown error occurred. Please consult the log for more details.

2026-07-08 07:58:48.433 [error] [Window] [Extension Host] (node:2420) [DEP0169] DeprecationWarning: `url.parse()` behavior is not standardized and prone to errors that have security implications. Use the WHATWG URL API instead. CVEs are not issued for `url.parse()` vulnerabilities.

The issue names no files or tests. Start by reproducing the log in the VS Code extension host and tracing the `punycode` and `url.parse()` warnings to their source. Done means the reported warnings and unknown error are explained and resolved.

Written by the indexing model from the issue text.