dbt Power User Extension - Endless Parsing Loop on dbt 1.11.2

The problem I’m having

I’m experiencing an endless parsing loop (at the bottom left of VSC) when using the dbt Power User VS Code extension. The extension continuously parses without completing, making it unusable for my workflow. The parsing indicator just spins indefinitely and I can’t access any of the extension’s features like autocomplete, lineage visualization, or inline YAML editing.

The context of why I’m trying to do this

I need column-level lineage visualization and inline editing features while developing dbt models. I’m working on a Snowflake project with several models and need to see data previews and lineage directly in VS Code without switching to the browser. Im on dbt 1.11.2 using a conda env (due to organizational policies), but i cant make it work now.

What I’ve already tried

  1. Reloading the VS Code window multiple times

  2. Reinstalling the dbt Power User extension

  3. Checking that my Python environment is properly detected

  4. Verifying my dbt project works fine with CLI commands

  5. Modify several times project yml

  6. Delete packages (bcuz i guess it started around the time i installed some packages) and clean project several times

Any help would be highly appreciated bcuz at this point not even Copilot can help me with this issue…

I believe I have finally figured out why this is happening.

I have a local copy of the dbt-utils in a folder “libraries” which I use for our projects.

When this folder is included in the workspace, it goes into an endless loop of trying to parse dbt-utils because it includes a dbt_project.yml and a folder “integration tests” which also includes a dbt_project.yml and a packages.yml which references “..”.

This causes it to endlessly copy dbt-utils to integration tests, which then finds a new dbt_project.yml and packages.yml, which copies .. and finds another dbt_project.yml…….

Removing the libraries folder from my workspace has fixed the issue for me.