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Thank you for reporting this. We are tracking these under a single issue (64). If you have logs, please share them. There are known issues with the .net installation tool. The first is if powershell is not configured to run scripts (the installation tool is a powershell script). There is also an FAQ on known issues available here: https://github.com/dotnet/vscode-dotnet-runtime/blob/main/Documentation/troubleshooting-runtime.md
Does this occur consistently?
Repro steps:
Action: azextAgent.activate
Error type: Error
Error Message: Failed to acquire .NET runtime
Version: 0.3.87
OS: darwin
OS Release: 24.2.0
Product: Visual Studio Code
Product Version: 1.96.2
Language: en
Call Stack
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