Error running direnv command

[MShuttle]

Environment

Macbook Pro Macos Monterey 12.5 VSCode Version: 1.69.2 (Universal) Commit: 3b889b090b5ad5793f524b5d1d39fda662b96a2a Date: 2022-07-18T16:12:57.074Z (1 wk ago) Electron: 18.3.5 Chromium: 100.0.4896.160 Node.js: 16.13.2 V8: 10.0.139.17-electron.0 OS: Darwin x64 21.6.0

Reproduce

Install direnv via Homebrew Install VSCode direnv extension via VSCode extension manager

Check install

$ which direnv => /usr/local/bin/direnv

$ direnv --version => 2.32.1

Issue

1. On VSCode start the direnv extension emits

direnv error: /bin/sh: direnv: command not found

Source direnv extension

2. On command > direnv allow the .envrc the extension emits

direnv error: /bin/sh: direnv: command not found

Source direnv extension

Screenshots

[DJohnston-Veritas]

+1 same issue. macOS 13.4.1c, installed with Homebrew, direnv 2.32.2.