It is not an SDK issue, in fact I just found I can reproduce it on the same machine.
- Use the NXP extension's "import example from repository" to create a new project
- Work on it, just to ensure it works ok.
- Remove the project from the vscode workspace (not from the disk, only from the vscode exporer)
- delete the .vscode folder inside the project folder in the disk. (according to vscode documentation, this folder is system specific, so it can be re-created any time a project is imported.
- Use NXP Extension's "Import Folder" feature to re-import the project <---- issue: the tool cannot detect that this is a project, doesn't let import
- Manually add the project folder to vscode using vscode's 'add folder to workspace' feature.
- Look in the NXP extension's section <-- issue: the project added doesn't show, it is not recognized by the extension.
- Now recover the .vscode folder from trash.
- Repeat the NXP extension's import step <-- now it works ok again.
Essentially, .vscode is needed for the NXP extension to recognize the project. However, this goes against vscode's operation mode, where it says that the .vscode is not needed to import a project.
The solution for now is to include the .vscode when sharing projects. I also confirmed this using git: adding the .vscode to the commit the project can be imported on another machine. In my case, my two machines are similar so no changes to .vscode are needed, however I suspect moving to a different OS will require some manual tweaking of the .vscode.
I also found that, in the workspace folder in the disk, there're several hidden folders created by the extension, so there may be other features affected if those are not included in the commit.
While this can be worked out by manually editing the .vscode content, this makes sharing projects among team members a complication. Don't know what's NXP's take on this but it'd be important that they come out with some documentation recommeding strategies for project sharing.