Can't enable TypeScript native preview in VS Code

Extension Version

0.20260612.1

VS Code Version

1.124.2

Operating system Version

Windows 11 Pro 25H2 26200.8655

Steps to reproduce

1. Open a .ts file in VS code
2. Select "TypeScript Native Preview: Enable (Experimental)" in the command palette
3. Select "Use TypeScript Native Preview (Experimental) 0.20260612.1" in the TS version selector

Issue

Nothing happens, VS Code keeps using TypeScript version that was used before, either from workspace or bundled.

I have the following line in the "typescript-native-preview" output channel:

2026-06-12 17:08:48.505 [info] TypeScript Native Preview is disabled. Select 'Enable TypeScript Native Preview (Experimental)' in the command palette to enable it.

I've tried restarting extension host, restarting VS Code, reinstalling the extenstion, nothing helps.