diff --git a/package-lock.json b/package-lock.json
index 3e093c19..6ddb6c62 100644
--- a/package-lock.json
+++ b/package-lock.json
@@ -1,16 +1,16 @@
 {
     "name": "vscode-ros",
-    "version": "0.9.4",
+    "version": "0.9.5",
     "lockfileVersion": 2,
     "requires": true,
     "packages": {
         "": {
             "name": "vscode-ros",
-            "version": "0.9.4",
+            "version": "0.9.5",
             "license": "SEE LICENSE IN LICENSE",
             "dependencies": {
-                "@polyhobbyist/babylon_ros": "^0.0.4",
-                "@polyhobbyist/babylon-collada-loader": "^0.0.3",
+                "@polyhobbyist/babylon_ros": "^0.0.6",
+                "@polyhobbyist/babylon-collada-loader": "^0.0.4",
                 "@vscode/debugadapter": "^1.59.0",
                 "@vscode/extension-telemetry": "^0.6.2",
                 "@vscode/webview-ui-toolkit": "^1.2.2",
@@ -371,9 +371,9 @@
             }
         },
         "node_modules/@polyhobbyist/babylon_ros": {
-            "version": "0.0.4",
-            "resolved": "https://registry.npmjs.org/@polyhobbyist/babylon_ros/-/babylon_ros-0.0.4.tgz",
-            "integrity": "sha512-t3pbnutuv6h5Kh+KI1baVu5DC93h5x0PO9ias2m5ELMFXLAjbMu3U4CjeyqjTAPoGFfrW9UvNKDBv06mEh6cjA==",
+            "version": "0.0.6",
+            "resolved": "https://registry.npmjs.org/@polyhobbyist/babylon_ros/-/babylon_ros-0.0.6.tgz",
+            "integrity": "sha512-dFhLmQ7vPaBTIJB+JzWbXA1ReeLO52/PDsPvLNX9No3SYg0jM1+mcatzHLn5WzpTU9ZosB/m+4tbLs4FJs1+Sg==",
             "dependencies": {
                 "@types/xml2js": "^0.4.11",
                 "babylonjs": "^5.53.0",
@@ -390,9 +390,9 @@
             }
         },
         "node_modules/@polyhobbyist/babylon-collada-loader": {
-            "version": "0.0.3",
-            "resolved": "https://registry.npmjs.org/@polyhobbyist/babylon-collada-loader/-/babylon-collada-loader-0.0.3.tgz",
-            "integrity": "sha512-G8sosoJhdaLA/dN8lChrlgM5B9VzkAiISfNY0c5hySYigUQajqcCecYkMkoyPp7PfXabUu6uf93P89jSPibJlQ==",
+            "version": "0.0.4",
+            "resolved": "https://registry.npmjs.org/@polyhobbyist/babylon-collada-loader/-/babylon-collada-loader-0.0.4.tgz",
+            "integrity": "sha512-13gJQAWhxXg5HVBPw7Cf13d6dYo/OoYC8rU2MWYZgk3hTqmXndlK9twz8dc3My0/DwKUaewg3tb9RBOkqroagw==",
             "dependencies": {
                 "@types/xml2js": "^0.4.11",
                 "babylonjs": "^5.53.0",
@@ -5627,9 +5627,9 @@
             }
         },
         "@polyhobbyist/babylon_ros": {
-            "version": "0.0.4",
-            "resolved": "https://registry.npmjs.org/@polyhobbyist/babylon_ros/-/babylon_ros-0.0.4.tgz",
-            "integrity": "sha512-t3pbnutuv6h5Kh+KI1baVu5DC93h5x0PO9ias2m5ELMFXLAjbMu3U4CjeyqjTAPoGFfrW9UvNKDBv06mEh6cjA==",
+            "version": "0.0.6",
+            "resolved": "https://registry.npmjs.org/@polyhobbyist/babylon_ros/-/babylon_ros-0.0.6.tgz",
+            "integrity": "sha512-dFhLmQ7vPaBTIJB+JzWbXA1ReeLO52/PDsPvLNX9No3SYg0jM1+mcatzHLn5WzpTU9ZosB/m+4tbLs4FJs1+Sg==",
             "requires": {
                 "@types/xml2js": "^0.4.11",
                 "babylonjs": "^5.53.0",
@@ -5646,9 +5646,9 @@
             }
         },
         "@polyhobbyist/babylon-collada-loader": {
-            "version": "0.0.3",
-            "resolved": "https://registry.npmjs.org/@polyhobbyist/babylon-collada-loader/-/babylon-collada-loader-0.0.3.tgz",
-            "integrity": "sha512-G8sosoJhdaLA/dN8lChrlgM5B9VzkAiISfNY0c5hySYigUQajqcCecYkMkoyPp7PfXabUu6uf93P89jSPibJlQ==",
+            "version": "0.0.4",
+            "resolved": "https://registry.npmjs.org/@polyhobbyist/babylon-collada-loader/-/babylon-collada-loader-0.0.4.tgz",
+            "integrity": "sha512-13gJQAWhxXg5HVBPw7Cf13d6dYo/OoYC8rU2MWYZgk3hTqmXndlK9twz8dc3My0/DwKUaewg3tb9RBOkqroagw==",
             "requires": {
                 "@types/xml2js": "^0.4.11",
                 "babylonjs": "^5.53.0",
diff --git a/package.json b/package.json
index 682af6f4..909092b5 100644
--- a/package.json
+++ b/package.json
@@ -456,8 +456,8 @@
         "test-compile": "npm run webpack"
     },
     "dependencies": {
-        "@polyhobbyist/babylon_ros": "^0.0.5",
-        "@polyhobbyist/babylon-collada-loader": "^0.0.3",
+        "@polyhobbyist/babylon_ros": "^0.0.6",
+        "@polyhobbyist/babylon-collada-loader": "^0.0.4",
         "@vscode/debugadapter": "^1.59.0",
         "@vscode/extension-telemetry": "^0.6.2",
         "@vscode/webview-ui-toolkit": "^1.2.2",
diff --git a/src/build-tool/colcon.ts b/src/build-tool/colcon.ts
index 63b1c29b..dfc34e74 100644
--- a/src/build-tool/colcon.ts
+++ b/src/build-tool/colcon.ts
@@ -8,6 +8,7 @@ import * as child_process from "child_process";
 import * as extension from "../extension";
 import * as common from "./common";
 import * as rosShell from "./ros-shell";
+import { env } from "process";
 
 function makeColcon(command: string, verb: string, args: string[], category?: string): vscode.Task {
     let installType = '--symlink-install';
@@ -53,7 +54,7 @@ export async function isApplicable(dir: string): Promise<boolean> {
         colconCommand = `colcon --log-base /dev/null list --base-paths ${srcDir}`;
     }
 
-    const { stdout, stderr } = await child_process.exec(colconCommand);
+    const { stdout, stderr } = await child_process.exec(colconCommand, { env: extension.env });
 
     // Does this workspace have packages?
     for await (const line of stdout) {
diff --git a/src/extension.ts b/src/extension.ts
index c70277f1..22557de0 100644
--- a/src/extension.ts
+++ b/src/extension.ts
@@ -233,10 +233,12 @@ async function activateEnvironment(context: vscode.ExtensionContext) {
     await sourceRosAndWorkspace();
 
     if (typeof env.ROS_DISTRO === "undefined") {
+        processingWorkspace = false;
         return;
     }
 
     if (typeof env.ROS_VERSION === "undefined") {
+        processingWorkspace = false;
         return;
     }
 
@@ -377,28 +379,32 @@ async function sourceRosAndWorkspace(): Promise<void> {
             newEnv = process.env;
         }
     }
-    // Source the workspace setup over the top.
-    // TODO: we should test what's the build tool (catkin vs colcon).
-    let workspaceOverlayPath: string;
-    workspaceOverlayPath = path.join(`${baseDir}`, "devel_isolated");
-    if (!await pfs.exists(workspaceOverlayPath)) {
-        workspaceOverlayPath = path.join(`${baseDir}`, "devel");
-    }
-    if (!await pfs.exists(workspaceOverlayPath)) {
-        workspaceOverlayPath = path.join(`${baseDir}`, "install");
-    }
-    let wsSetupScript: string = path.format({
-        dir: workspaceOverlayPath,
-        name: "setup",
-        ext: setupScriptExt,
-    });
 
-    if (newEnv && typeof newEnv.ROS_DISTRO !== "undefined" && await pfs.exists(wsSetupScript)) {
-        try {
-            newEnv = await ros_utils.sourceSetupFile(wsSetupScript, newEnv);
-        } catch (_err) {
-            vscode.window.showErrorMessage("Failed to source the workspace setup file.");
+    let workspaceOverlayPath: string = "";
+    if (baseDir !== undefined) {
+        // Source the workspace setup over the top.
+        // TODO: we should test what's the build tool (catkin vs colcon).
+        workspaceOverlayPath = path.join(`${baseDir}`, "devel_isolated");
+        if (!await pfs.exists(workspaceOverlayPath)) {
+            workspaceOverlayPath = path.join(`${baseDir}`, "devel");
+        }
+        if (!await pfs.exists(workspaceOverlayPath)) {
+            workspaceOverlayPath = path.join(`${baseDir}`, "install");
+        }
+        let wsSetupScript: string = path.format({
+            dir: workspaceOverlayPath,
+            name: "setup",
+            ext: setupScriptExt,
+        });
+
+        if (newEnv && typeof newEnv.ROS_DISTRO !== "undefined" && await pfs.exists(wsSetupScript)) {
+            try {
+                newEnv = await ros_utils.sourceSetupFile(wsSetupScript, newEnv);
+            } catch (_err) {
+                vscode.window.showErrorMessage("Failed to source the workspace setup file.");
+            }
         }
+
     }
 
     env = newEnv;