We bundled our own distribution of the RTOS plugin with the extension on Windows and Linux. (For macOS, the extension will still use the nRF Command Line Tools version of the plugin.) The bundled version changes the thread names to remove its current state. It also fixes a few cases where the VS Code debugger and J-Link did not cooperate properly.
This changes was needed because the thread awareness in the debugger is created through J-Link's RTOS plugin for Zephyr. The plugin is normally distributed with the nRF Command Line Tools and is designed to work with GDB on the command line. For VS Code, this means that we cannot control which version of the plugin runs with the debugger. Additionally, the way that the threads are presented to the user is not well suited for the visual representation in the VS Code user-interface.