Problem

After upgradingESP8266/Arduino core tov3.1.1, the Arduino extension regenerated thc_cpp_properties.json file with acompilerPath attribute having value causing followingC/C++ configuration error:
Unable to resolve configuration with compilerPath: "@D:\Portable\Arduino\portable\packages\esp8266\hardware\esp8266\3.1.1\tools\warnings\default-g++"
On top of this line fromC/C++ Configuration Warning output, the Code UI shows 5 instances ofcpptools output windows, all having same content (see also snapshot below):
[Error - 18:20:27] Connection to server got closed. Server will not be restarted.

Then, the intellisense stops working at all, no cross reference can be followed (Ctrl+left mouse click) to see details of function or variable declaration etc.

Environment

Code

Version: 1.74.3
Commit: 97dec172d3256f8ca4bfb2143f3f76b503ca0534
Date: 2023-01-09T16:59:02.252Z
Electron: 19.1.8
Chromium: 102.0.5005.167
Node.js: 16.14.2
V8: 10.2.154.15-electron.0
OS: Windows_NT x64 10.0.19045
Sandboxed: No

Code Extensions

Arduino: 0.4.12
C/C++ Extension Pack: 1.3.0

Steps to reproduce

Just run VS Code, open any sketch with Arduino code (*.ino), even empty one. Popup error start to come up in the lower right corner - see snapshot:

Code snippet

Every, does not matter, even this simple blinking LED example:

byte go = LOW;voidsetup() {pinMode(LED_BUILTIN, OUTPUT);digitalWrite(LED_BUILTIN, go);}voidloop() {delay(500);    go =1 - go;digitalWrite(LED_BUILTIN, go);}

Code Dev Tools Console Log

see attached file please
vscode-app-1673804966418.log