Error 'The Database wit ud caouldn't be found" when using vscode powershell

Hey all,

New here.

encounter verry odd behaviour:

when managing exhcange online fron buildin powershell on Microsoft Entra - everything works fine.

whent connecting from a vscode remote powershell I am getting this error for specific cmdlets of exchange online.

Working with V3 & latest powershell enging with vscode.

Any ideas?