A few days ago, I was working on a react project and open in editor was working fine, and now looking at it, the option is there but it is disabled. Not sure why, just all of a sudden the button is disabled. I tried updating the extension and deleting and installing it again but nothing has seemed to solve it.
It should have been enabled and take me to VS code showing me the exact file and line on that component being rendered from the DOM tree.
Have you updated you chrome recently? I've met the same problem, i guess that the chrome update caused the problem, try to use the lower version of chrome.