Failed to connect. Is Docker running? in Visual Studio Docker extension

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I've been using the VScode Docker extension to visualize running containers.

Lately (2 weeks circa today) the Docker tab shows the error:

Failed to connect. Is Docker running?

Error in tab](https://i.stack.imgur.com/bGMHg.png)

I can still operate using docker ps and exec and I can see the list of images installed in the machine. I've searched online but I can't seem to be seeing this same error.

> Error: Template parsing error:template::1:194: executing "" at <.State>: can't evaluate filed State in type *formatter.containerContext

I tried searching stack overlflow but it seems that I can't see the same error as I'm having.

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