Keywords are still recognized but only new user-definied classes are recognized, using namespaces isn’t recognized either, code runs fine but really annoying to code like this.
Tried everything for hours, even to the point of running a Windows 10 VM, with a new user doing a clean install of VS Code (with only the C# and .NET Install Tool for Extension Authors extensions) and .NET 7.0 SDK but still not working.
I was considering re-installing Windows on my main system but seeing as how it’s not working on the VM either that would be pointless, anyone else having this problem too?
>Solution :
I’ve faced the same issue today. This is due to an update of the extension to v2.0.320. You can fix this by reverting back to version v1.26.0.
You can revert using the UI by going to Extensions -> C# -> Install Another Version:

There also is an open Github issue related to this.