Revert "Revert "Merge branch 'main' of https://github.com/microsoft/vscode into main""

This reverts commit 7c01395da1.

extensions/vscode-test-resolver/package.json

@@ -32,7 +32,8 @@
   "capabilities": {
     "untrustedWorkspaces": {
       "supported": true
-    }
+    },
+    "virtualWorkspaces": true
   },
   "contributes": {
     "resourceLabelFormatters": [
@@ -88,7 +89,7 @@
       "statusBar/remoteIndicator": [
         {
           "command": "vscode-testresolver.newWindow",
-          "when": "!remoteName",
+          "when": "!remoteName && !virtualWorkspace",
           "group": "remote_90_test_1_local@2"
         },
         {