Use normal WaitForResourceHealthyAsync in AppHostRpcTarget.

src/Aspire.Hosting/Backchannel/AppHostRpcTarget.cs

@@ -9,7 +9,6 @@
 using Aspire.Hosting.Publishing;
 using Aspire.Hosting.Utils;
 using Microsoft.Extensions.DependencyInjection;
-using Microsoft.Extensions.Diagnostics.HealthChecks;
 using Microsoft.Extensions.Hosting;
 using Microsoft.Extensions.Logging;
 using Microsoft.Extensions.Options;
@@ -114,16 +113,11 @@ public Task<long> PingAsync(long timestamp, CancellationToken cancellationToken)
             throw new InvalidOperationException("Dashboard URL requested but dashboard is disabled.");
         }
 
-        // Wait for the dashboard to be healthy before returning the URL. This next statement has several
-        // layers of hacks. Some to work around devcontainer/codespaces port forwarding behavior, and one to
-        // temporarily work around the fact that resource events abuse the state to mark the resource as
-        // hidden instead of having another field. There is a corresponding modification in the ResourceHealthService
-        // which allows the dashboard resource to trigger health reports even though it never enters
-        // the Running state. This is a hack. The reason we can't just check HealthStatus is because
-        // the current implementation of HealthStatus depends on the state of the resource as well.
-        await resourceNotificationService.WaitForResourceAsync(
+        // Wait for the dashboard to be healthy before returning the URL. This is to ensure that the
+        // endpoint for the resource is available and the dashboard is ready to be used. This helps
+        // avoid some issues with port forwarding in devcontainer/codespaces scenarios.
+        await resourceNotificationService.WaitForResourceHealthyAsync(
             KnownResourceNames.AspireDashboard,
-            re => re.Snapshot.HealthReports.All(h => h.Status == HealthStatus.Healthy),
             cancellationToken).ConfigureAwait(false);
 
         var dashboardOptions = serviceProvider.GetService<IOptions<DashboardOptions>>();

src/Aspire.Hosting/Dashboard/DashboardLifecycleHook.cs

@@ -160,6 +160,9 @@ private void ConfigureAspireDashboardResource(IResource dashboardResource)
             }
         }
 
+        var showDashboardResources = configuration.GetBool(KnownConfigNames.ShowDashboardResources, KnownConfigNames.Legacy.ShowDashboardResources);
+        var hideDashboard = !(showDashboardResources ?? false);
+
         var snapshot = new CustomResourceSnapshot
         {
             Properties = [],
@@ -170,11 +173,7 @@ private void ConfigureAspireDashboardResource(IResource dashboardResource)
                 ContainerResource => KnownResourceTypes.Container,
                 _ => dashboardResource.GetType().Name
             },
-            State = configuration.GetBool(KnownConfigNames.ShowDashboardResources, KnownConfigNames.Legacy.ShowDashboardResources) is true
-                ? null
-#pragma warning disable CS0618 // Type or member is obsolete
-                : KnownResourceStates.Hidden
-#pragma warning restore CS0618 // Type or member is obsolete
+            IsHidden = hideDashboard
         };
 
         dashboardResource.Annotations.Add(new ResourceSnapshotAnnotation(snapshot));

src/Aspire.Hosting/DistributedApplicationBuilder.cs

@@ -333,19 +333,7 @@ public DistributedApplicationBuilder(DistributedApplicationOptions options)
                 _innerBuilder.Services.TryAddEnumerable(ServiceDescriptor.Singleton<IConfigureOptions<DashboardOptions>, ConfigureDefaultDashboardOptions>());
                 _innerBuilder.Services.TryAddEnumerable(ServiceDescriptor.Singleton<IValidateOptions<DashboardOptions>, ValidateDashboardOptions>());
 
-                // Dashboard health check.
-                _innerBuilder.Services.AddHealthChecks().AddUrlGroup(sp => {
-
-                    var dashboardOptions = sp.GetRequiredService<IOptions<DashboardOptions>>().Value;
-                    if (StringUtils.TryGetUriFromDelimitedString(dashboardOptions.DashboardUrl, ";", out var firstDashboardUrl))
-                    {
-                        return firstDashboardUrl;
-                    }
-                    else
-                    {
-                        throw new DistributedApplicationException($"The dashboard resource '{KnownResourceNames.AspireDashboard}' does not have endpoints.");
-                    }
-                }, KnownHealthCheckNames.DasboardHealthCheck);
+                ConfigureDashboardHealthCheck();
             }
 
             if (options.EnableResourceLogging)
@@ -401,6 +389,24 @@ public DistributedApplicationBuilder(DistributedApplicationOptions options)
         LogBuilderConstructed(this);
     }
 
+    private void ConfigureDashboardHealthCheck()
+    {
+        _innerBuilder.Services.AddHealthChecks().AddUrlGroup(sp => {
+
+            var dashboardOptions = sp.GetRequiredService<IOptions<DashboardOptions>>().Value;
+            if (StringUtils.TryGetUriFromDelimitedString(dashboardOptions.DashboardUrl, ";", out var firstDashboardUrl))
+            {
+                return firstDashboardUrl;
+            }
+            else
+            {
+                throw new DistributedApplicationException($"The dashboard resource '{KnownResourceNames.AspireDashboard}' does not have endpoints.");
+            }
+        }, KnownHealthCheckNames.DasboardHealthCheck);
+
+        _innerBuilder.Services.SuppressHealthCheckHttpClientLogging(KnownHealthCheckNames.DasboardHealthCheck);
+    }
+
     private void ConfigureHealthChecks()
     {
         _innerBuilder.Services.AddSingleton<IValidateOptions<HealthCheckServiceOptions>>(sp =>

src/Aspire.Hosting/Health/ResourceHealthCheckService.cs

@@ -39,10 +39,7 @@ protected override async Task ExecuteAsync(CancellationToken stoppingToken)
                     }
                 }
 
-                // HACK: We are special casing the Aspire dashboard here until we address the issue of the Hidden state
-                //       making it impossible to determine whether a hidden resource is running or not. When that change
-                //       is made we can remove the special case logic here for the dashboard.
-                if (resourceEvent.Snapshot.State?.Text == KnownResourceStates.Running || resourceEvent.Resource.Name == KnownResourceNames.AspireDashboard)
+                if (resourceEvent.Snapshot.State?.Text == KnownResourceStates.Running)
                 {
                     if (state == null)
                     {

src/Aspire.Hosting/ResourceBuilderExtensions.cs

@@ -6,6 +6,7 @@
 using Aspire.Dashboard.Model;
 using Aspire.Hosting.ApplicationModel;
 using Aspire.Hosting.Publishing;
+using Aspire.Hosting.Utils;
 using HealthChecks.Uris;
 using Microsoft.Extensions.DependencyInjection;
 using Microsoft.Extensions.Diagnostics.HealthChecks;
@@ -1281,12 +1282,8 @@ internal static IResourceBuilder<T> WithHttpHealthCheckInternal<T>(this IResourc
         });
 
         var healthCheckKey = $"{builder.Resource.Name}_{endpointName}_{path}_{statusCode}_check";
-        builder.ApplicationBuilder.Services.AddLogging(configure =>
-        {
-            // The AddUrlGroup health check makes use of http client factory.
-            configure.AddFilter($"System.Net.Http.HttpClient.{healthCheckKey}.LogicalHandler", LogLevel.None);
-            configure.AddFilter($"System.Net.Http.HttpClient.{healthCheckKey}.ClientHandler", LogLevel.None);
-        });
+
+        builder.ApplicationBuilder.Services.SuppressHealthCheckHttpClientLogging(healthCheckKey);
 
         builder.ApplicationBuilder.Services.AddHealthChecks().AddUrlGroup((UriHealthCheckOptions options) =>
         {

src/Aspire.Hosting/Utils/LoggingUtils.cs

@@ -0,0 +1,20 @@
+// Licensed to the .NET Foundation under one or more agreements.
+// The .NET Foundation licenses this file to you under the MIT license.
+
+using Microsoft.Extensions.DependencyInjection;
+using Microsoft.Extensions.Logging;
+
+namespace Aspire.Hosting.Utils;
+
+internal static class LoggingUtils
+{
+    public static void SuppressHealthCheckHttpClientLogging(this IServiceCollection services, string healthCheckName)
+    {
+        services.AddLogging(configure =>
+        {
+            // The AddUrlGroup health check makes use of http client factory.
+            configure.AddFilter($"System.Net.Http.HttpClient.{healthCheckName}.LogicalHandler", LogLevel.None);
+            configure.AddFilter($"System.Net.Http.HttpClient.{healthCheckName}.ClientHandler", LogLevel.None);
+        });
+    }
+}

tests/Aspire.Hosting.Tests/Dashboard/DashboardResourceTests.cs

@@ -52,7 +52,7 @@ public async Task DashboardIsAutomaticallyAddedAsHiddenResource(string showDashb
         Assert.NotNull(dashboard);
         Assert.Equal("aspire-dashboard", dashboard.Name);
         Assert.Equal(dashboardPath, dashboard.Command);
-        Assert.Equal("Hidden", initialSnapshot.InitialSnapshot.State);
+        Assert.True(initialSnapshot.InitialSnapshot.IsHidden);
     }
 
     [Fact]