Compilation errors on a working codebase as soon as I install this extension

As soon as I install this extension I start getting all kind of compilation errors in the PROBLEM view. Errors that don't make sense like saying it can't find a variable that's clearly defined.
If I close VSCode or uninstall the extension it starts working again.
Maybe something to do with classpath? Please help me figure this out, I'll pulling my hair out over this for days.

I have tried cleaning the workspace directory already.

Environment

• Operating System: MacOS BigSur
• JDK version: 8(Maven tells me 1.8)
• Visual Studio Code version: 1.54.3
• Java extension version: v0.76.0

Steps To Reproduce

1. Open VSCode with extension installed
2. Go to the terminal(either os terminal or VSCode terminal) and run mvn clean verify install

Sample project to reproduce the error
Logs

Current Result

Bunch of build errors

Expected Result

No build errors since this is a healthy project when it doesn't have the extension installed.

Additional Informations

• Works normally with eclipse open.
• Works normally with VSCode open but without this extension installed(I can install everything else in the https://github.com/Microsoft/vscode-java-pack). Meaning this is, indeed, the culprit.

Reproduce the issue with the segmentio/analytics-java sample project using mvn clean verify install on the stated macOS, JDK 8, VS Code, and Java extension versions. Compare the Problems view and build behavior with the extension installed, and inspect the linked logs. Done means the healthy project no longer receives spurious compilation errors while the extension is enabled.