DVC is not initialized

[NikitaGordia]

Version:

DVC plugin version: 1.2.29
DVC cli tool (python package): 3.64.0
VSCode version: Version:
1.105.1 (Universal)
Commit: 7d842fb85a0275a4a8e4d7e040d2625abbf7f084
Date: 2025-10-14T22:33:36.618Z
Electron: 37.6.0
ElectronBuildId: 12502201
Chromium: 138.0.7204.251
Node.js: 22.19.0
V8: 13.8.258.32-electron.0
OS: Darwin arm64 24.6.0

Issue

I've got initialized dvc in my project and added files but when I install the plugin I get "DVC is not initialized" page with Command: /home/lab/cv5/.venv/bin/python -m dvc which is actually correct command and if I run it I get a valid dvc response:

ERROR: the following arguments are required: command
usage: dvc [-q | -v] [-h] [-V] [--cd <path>] [--wait-for-lock] command ...
...

When I click on "Initialize Project" I get:

[version: 1.2.29, 2025-11-15T11:55:00.160Z, pid: 400239] > /home/lab/cv5/.venv/bin/python -m dvc init --subdir - INITIALIZED
[version: 1.2.29, 2025-11-15T11:55:00.395Z, pid: 400239] > /home/lab/cv5/.venv/bin/python -m dvc init --subdir - FAILED with code 1 (242ms)
ERROR: failed to initiate DVC - '.dvc' exists. Use `-f` to force.

Feel free to ask any question.