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When packaging the extensions, Webpack is run in production mode to bundle and minify the extension's code. To avoid this:
Edit vscode/build/lib/extensions.js.
vscode/build/lib/extensions.js
Find the place that invokes Webpack.
Comment out the mode: 'production' option passed to it.
mode: 'production'
At the time of writing, the modification looks like this:
const webpackConfig = Object.assign(Object.assign({}, require(webpackConfigPath))/* , { mode: 'production' } */);
Run the packaging scripts.