“Failed to configure project” when resources nested inside source folder

The VS Code Java plugin cannot import a project from a build.gradle file that places a test resources directory inside a test source directory. Gradle itself, however, supports this.

Environment

• Operating System: macOS 10.15.6
• JDK version: OpenJDK 14.0.2
• Visual Studio Code version: 1.48.1
• Java extension version: 0.65.0

Steps To Reproduce

Populate build.gradle with the following simple configuration:

plugins {
    id 'java'
}

sourceSets {
    test.java.srcDirs = ['test']
    test.resources.srcDirs = ['test/res']
}

Current Result

The VS Code plugin will produce a Failed to configure project error (with no further information, AFAICT).

However, gradle test will execute perfectly happily.

Expected Result

It should import the project with test/res copied to the test resources folder, just as gradle itself does.

Reproduce the project configuration shown in build.gradle, then trace the VS Code Java plugin's Gradle import handling for nested test resources. Done means the project imports without the “Failed to configure project” error and test/res is copied to the test resources folder.