For IDF 4.3.1 i had to add
set(REQUIRES json)

to CMakeLists.txt of my library

I thought it was working but it didn't finish building

this is the correct way

Did anyone fix it?
This is annoying because it is often confused with ctrl + B.

Nope, still happens on IDF 4.2.1

I am not sure how to install the packages in vscode.

If I select to configure esp-idf, it seems it wants to install all the esp-idf.

Where can I enter the command to "install esp-idf python-packages"? (I am still fairly new to vscode setup and commands).

Why does the extension not install what ...

If you want to implement the fix that's on github without recompiling anything go to :
" C:\Users\%username%\.vscode\extensions\espressif.esp-idf-extension-0.6.0\dist "

open " extension.js ", then find and replace
function Be(e,t){const n=i.basename(o.env.shell);let r={"cmd.exe":'set "VARIABLE ...