MCP server not working when logged in to copilot

[p4chirag]

Does this issue occur when all extensions are disabled?: Yes/No

• VS Code Version:
• OS Version:

Steps to Reproduce:

1. install version VSCodeUserSetup-x64-1.101.2
2. log in to Github Copilot no tools are visible and it shows MCP server in extension window however all options are disabled including start, stop.
3. working when downgraded to VSCodeSetup-x64-1.20.1