Microsoft Dynamics 365 Business Central development team has identified and fixed already following scenario.

Issue reported impacts only sandbox environment.

  Trying to deploy an extension (XXX version 1.0.0.1) on Sandbox environment named CopyProd is being installed under same AAD but under environment name/type Sandbox.

  To resolve this issue, please upgrade VS Extension AL Language to latest version released at this time (v 6.1.352568) .

  

NOTE: Remember to restart Visual Studio Code once you have added upgraded Extension AL Language.

For more technical details please access  https://github.com/microsoft/AL/issues/6219

If you encounter bugs with the extension, ensure you have the latest version of Visual Studio Code before reporting them through GitHub https://github.com/microsoft/al/issues.