Failing to run nix-shell

[jcheatum]

Describe the bug

When I try to select the shell.nix file in the current directory, it looks like it's just hanging on "Applying environment" forever, similar to #96. Looking at the console in dev tools, I see the following error:

Error: Command failed: nix-shell "/home/jcheatum/code/rmup/shell.nix" --run export
error: no argument specified and no 'shell.nix' or 'default.nix' file found in the working directory

The shell.nix file definitely exists, and it works fine running it manually from the terminal.

To Reproduce
Steps to reproduce the behavior:

1. Use this shell.nix file:

#!/usr/bin/env -S nix-shell --pure

{ pkgs ? import <nixpkgs> {} }:
  pkgs.mkShell {
    nativeBuildInputs = with pkgs.buildPackages; [
      rustc
      cargo
      alsa-lib.dev
      pkg-config
    ];

    PKG_CONFIG_PATH = "${pkgs.alsa-lib.dev}/lib/pkgconfig";
}

2. Run "Nix-Env: Select environment" from the ctrl+shift+p prompt
3. Select the shell.nix file.

Expected behavior
It successfully loads the shell.nix.

Screenshots

Environment:

• OS: NixOS 25.05
• VS Code: 1.100.2
• Version: 1.1.0

[m3t4n]

bump 🆙
this is the case for me as well for a while.