Extension fails to activate

[Nevon]

I've created a tauri project using npm create tauri@latest and opened up the project as a workspace in vscode. Running the extension commands, such as "Tauri: dev" shows an error saying the command tauri.dev does not exist. I am using the latest version of the extension installed directly from the vscode extension store.

Opening up the developer tools I can see the following error:

mainThreadExtensionService.ts:107 Activating extension 'tauri-apps.tauri-vscode' failed: Cannot find module 'run-in-terminal'
Require stack:
- /Users/nevon/.vscode/extensions/tauri-apps.tauri-vscode-0.2.7/out/extension.js
- /Applications/Visual Studio Code.app/Contents/Resources/app/out/bootstrap-fork.js.