Extension not recognising mod folder

D:\OneDrive\Documents\Paradox Interactive\Stellaris\mod is not recognised as the stellaris mod folder and does not activate the extension. have also tried opening the stellaris vanilla folder and it does work there, to a limited extent (autocomplete only working within original files, not within a new file, errors seem to be showing up, but not sure if they are correct.). I have set the vanilla directory and the rules version is on stable.

Update : moved the folder to another location and is working fine now.