I am using Docker Desktop for Windows v 2.2.0.5 on Windows 10. In my case, VSCode was not able to set the container build context correctly by reading the build.context property. I fixed the issue by setting the context property as mentioned in the schema here: https://code.visualstudio.com/docs/remote/containers#_devcontainerjson-reference.
		
			
				
	
	
	
		
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