`Error: No unique release file found!` when activating extension on Nix host

Upon opening any XML file for the first time after launching VSCode the following shows up in the extension host output panel and the extension does not start

2024-04-23 12:00:00.000 [error] Error: No unique release file found!
	at /home/team-output/.vscode-server/extensions/redhat.vscode-xml-0.26.1-linux-x64/dist/extension.js:2:178677
	at callback (/home/team-output/.open-remote-ssh/1a5daa3a0231a0fbba4f14db7ec463cf99d7768e/node_modules/graceful-fs/polyfills.js:306:20)
	at FSReqCallback.oncomplete (node:fs:202:21)

I am runinng VSCode in a minimalist docker container with Nix and I did not expect the server to be able to install and run by itself so I configured the binary manually:

{
	"xml.server.binary.path": "/nix/store/19mj4fqvwvd941awdrm3rwn43rk8z414-lemminx-0.27.0/bin/lemminx",
	"xml.server.preferBinary": true
}

I hoped that would remove the need to read information about my system but unfortunately the error persisted.

Reproduce the failure by opening an XML file in the described VSCode server and inspect the extension host output. Start from the stack trace location in dist/extension.js and the xml.server.binary.path and xml.server.preferBinary settings; done means the extension activates without the “No unique release file found!” error.