I very recently upgraded to Windows 11, I am not sure if this is the source of the issue though.
My proccess:
TroubleShooting steps taken:
Through command prompt located dotnet.
[ C:\Users\tim>where.exe dotnet C:\Program Files (x86)\dotnet\dotnet.exe C:\Program Files\dotnet\dotnet.exe ]
Restarted Computer
Uninstalled/Reinstalled .NET
Uninstalled/Reinstaled c# extension
My Pc -> settings ->advanced settings ->enviroment variables -> path -> dotnet is not listed, added manually. checked VS still not finding -> Restarted still not finding.
I have experienced same thing. This is how I resolved it