I’m having exactly the same issue. Perhaps related, Cursor also crashed and corrupted my state.vscdb file today in conjunction with this error, which I posted about at:
Cursor hang on reload - corrupted state.vscdb
Version: 2.6.21
VSCode Version: 1.105.1
Commit: fea2f546c979a0a4ad1deab23552a43568807590
Date: 2026-03-21T22:09:10.098Z
Build Type: Stable
Release Track: Default
Electron: 39.8.1
Chromium: 142.0.7444.265
Node.js: 22.22.1
V8: 14.2.231.22-electron.0
OS: Linux x64 6.8.0-106-generic