Cloud Code in Devcontainer ignores mounted gcloud credentials and GOOGLE_APPLICATION_CREDENTIALS

[udaya2899]

Environment:
Version information

Cloud Code Extension version: 2.37.0

VSCode version: Version: 1.109.2 (Universal)
Commit: 591199df409fbf59b4b52d5ad4ee0470152a9b31

OS: Linux (Devcontainer) / Host: Linux (Google Cloudtop)

Cloud SDK: System installed (Managed from cloudtop)

Skaffold: N/A

Kubectl: v1.35.1

Description: I am running VS Code in a Devcontainer where I have mounted my host's valid gcloud configuration and authenticated credentials. Despite configuring the extension to use the system gcloud and explicitly setting GOOGLE_APPLICATION_CREDENTIALS, the extension fails to pick up the credentials at startup, remains in a "Not signed in" state, and spams 401 errors for its internal API calls.

Observed Behavior:

• gcloud auth list inside the container shows the account is ACTIVE.
• GOOGLE_APPLICATION_CREDENTIALS is set and points to a valid application_default_credentials.json file (verified readable).
• Cloud Code logs immediately show a 401 error for cloudcode-pa.googleapis.com and the status bar asks to sign in.

[INFO]: Cloud Code version 2.37.0
[ERROR]: Unsuccessful http request to https://cloudcode-pa.googleapis.com/v1internal:listExperiments.
Response: {"error":{"code":401,"message":"Request is missing required authentication credential. Expected OAuth 2 access token...

Repro step:

1. Setup a .devcontainer that mounts the host's ~/.config/gcloud to the container (e.g., via a bind mount to /etc/user-host-config and symlinking or setting env vars).
2. Configure devcontainer.json to disable auto-dependencies:

   "customizations": {
      "vscode": {
       "settings": {
         "cloudcode.autoDependencies": "off",
         "cloudcode.dependencyPaths": { "gcloud": "/usr/bin/gcloud" }
       }
     }
   }
   

3. Set the environment variable in devcontainer.json:

   "remoteEnv": {
     "GOOGLE_APPLICATION_CREDENTIALS": "/etc/user-host-config/gcloud/application_default_credentials.json"
   }
   

4. Rebuild and open the Devcontainer.
5. Observe that gcloud CLI works fine, but the Extension fails to authenticate.