Docker Desktop is installed and running. Yet the extension pretends that it is not and suggests that I install it.

macOS: 12.6 VSCode: 1.74.3 Docker extension: 1.23.3

EDIT: Output of Docker extension:

Failed to set up event listener: spawn docker ENOENT
1

Probably the same issue as #3806 or #3783. We're seeing a lot of cases where some part of the environment is breaking down. We think it might be external: https://github.com/microsoft/vscode/issues/172124

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@dschuessler are you able to run docker commands within a VSCode terminal window? e.g. docker -v?

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