VSCode environment variables not working for path resolution

[mfairley]

Bug report

Describe the bug

Using the ${env:VAR} syntax does not work

"postgres-language-server.configFile": "${env:FLOX_ENV_PROJECT}/postgres-language-server.jsonc",

To Reproduce

Steps to reproduce the behavior, please provide code snippets or a repository:

1. Go to project.code-workspace
2. Set postgres-language-server.configFile to something with an environment variable
3. Config file not found message appears
4. See error

Expected behavior

Environment variable should be resolved to get the actual path

Screenshots

System information

Version: 2.1.25 (Universal)
VSCode Version: 1.105.1
Commit: 7584ea888f7eb7bf76c9873a8f71b28f034a9820
Date: 2025-11-23T04:45:23.529Z
Electron: 37.7.0
Chromium: 138.0.7204.251
Node.js: 22.20.0
V8: 13.8.258.32-electron.0
OS: Darwin arm64 25.1.0