Thank you @Rich, this is very helpful. I have started downloading VHDs and setting-up env on my local machine. Lets see how it goes. I will share updates later. I wonder who else in community started using VS 22 with VHD and how's experience so far. If this minimizes crashing debugger improves overall debugging experience, that would be huge time saver.
As of 7th November, VS2022 is supported. Recommended process for upgrade is
Uninstall VS2019 extension
Uninstall VS2019
Install VS2022 (specifically including the Visual studio extension development workload, and checking the option for Modeling SDK as below)
Install the extension by downloading the service update from LCS & using the VSIX located at ServiceUpdate\DevToolsService\Scripts
Whilst this is the recommendation from MS, I've found that
it's also necessary to copy the two .Targets files from ServiceUpdate\DevToolsService\Scripts to the MSBuild location (probably C:\Program Files (x86)\MSBuild\Microsoft\Dynamics\AX)
uninstalling VS2019 can prevent future service updates completing, so I'd suggest not uninstalling until the environment is updated to 10.0.38.
It's best to maintain the version of the visual studio that came with your development environment. As of version 10.0.34, the VS version is 2019.
If you have debugging issues, you might share it with us.
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