Visual Studio Code: Error Generation Bicep Template from Existing Azure Resource

The latest version of Microsoft's Bicep Extension (v0.26.54) for Visual Studio Code has a new behavior that causes an error message to be generated under certain circumstances. The Bicep Extension was covered in a blog post eighteen months ago (November 26, 2022: Azure: Generate a Bicep Template from an Existing Azure Resource using Visual Studio Code) and the manifesting of the following error message is a newish behavior in the extension:

Caught exception fetching resource: The ChainedTokenCredential failed to retrieve a token from the included credentials. - Please run 'az login' to set up account - Please run 'Connect-AzAccount' to set up account.

The error message above is generated while attempting to use the command, Bicep: Insert Resource (F1 displays the command palette or CTRL-SHIFT-P on Windows or CMD-SHIFT-P on Mac):

The error message is generated when a valid resource ID is entered for the Bicep: Insert Resource command and OK is clicked on in order to extract the Bicep template for an existing resource. The error message (see below) suggests a solution, logging in using Azure CLI (az login) or PowerShell (Connect-AzAccount):

At the time the error is generated, the Visual Studio Code Azure Extension is logged into a valid Azure Subscription:

Visual Studio Code's accounts show that the correct Microsoft account is logged in:

The solution is to log in to Azure via the Visual Studio Code Terminal window (displayed using CTRL-`):

There Terminal window above is PowerShell, so Azure will be logged into using Connect-AzAccount (note: Azure CLI's az login could also have been used):

Once the Terminal window is used to log in to, Azure the Bicep: Insert Resource command will run successfully meaning a Bicep template will be extracted from an existing Azure resource.