watch it get auto-renamed to test.ipynb.i extension and then you have to manually change it back to get the ipynb file extension/formatting etc. Didn’t find anything in vscode issues after a brief search and google was totally useless for searching the exact string “ipynb.i” unfortunately
probably a vs code issue then, although I haven’t found anyone else report this in github issues or anything. fwiw @type one fix is to cmd + b, create a new file by right-clicking and then naming it there lol