Cannot load any resource from Foundry - Sign in error

Foundry toolkit seems forgetting the sing in attempts and does not load any resources under default foundry project.

Does this occur consistently? Yes

TODO: Share the steps needed to reliably reproduce the problem. Please include actual and expected results.

1. Go to Azure extension
2. Locate your Foundry project under Foundry category
3. Right click on the project and click on "open in foundry toolkit extension"
4. Foundry toolkit does not open anything and shows an error: failed to load resources
5. Bottom-right corner alert in VS Code shows message: You are not signed in, Sing in
6. There is no way to sign in using alert; there is no way to sign in anywhere in the Foundry toolkit
7. The only way to sign in is using command pallet and running a task Azure: Sign in; however, signing this way does not resolve the issue.

I have reinstalled the extension, I have removed my account and added it again. Neither of this helping.

I report this issue directly from VS Code - using report issue button. It has added the following details. I hope it may help. Unfortunately, it did not copy any other details/error logs.

Action: h.listHostedAgentsDetailed
Error type: Error
Error Message: Failed to list hosted agents for project proj-default: You are not signed in to an Azure account. Please sign in.

Version: 1.6.1
OS: win32
OS Arch: x64
OS Release: 10.0.26200
Product: Visual Studio Code
Product Version: 1.126.0
Language: en
UTC time: Wed, 24 Jun 2026 21:56:35 GMT

R.listHostedAgents extension.js:8:224613
extension.js:8:1461214extension.js:8:1461214
m.t.callWithTelemetryAndErrorHandling extension.js:2:3043840
extension.js:8:1461015extension.js:8:1461015