Failed to connect to MCP server 'github-agentic-workflows'

[heaths]

The gh aw mcp-server is failing to start.

Following instructions from gh aw init, I added the MCP server to our .vscode/mcp.json file:

+    },
+    "github-agentic-workflows": {
+      "command": "gh",
+      "args": [
+        "aw",
+        "mcp-server"
+      ],
+      "cwd": "${workspaceFolder}"
     }
   }
 }

Starting Copilot CLI v1.0.2, I see:

Failed to connect to MCP server 'github-agentic-workflows'. Execute '/mcp show github-agentic-workflows' to inspect or check the logs.

Doing that shows,

 MCP Server: github-agentic-workflows

 Type:     local
 Command:  gh
 Status:   X Failed
 Error:    spawn gh ENOENT

 Tools: Server failed to connect

gh is installed (one of the first things I install) as well as the extension, which I used to scaffold all this. I can run gh aw mcp-server myself successfully, which prints a few lines to stderr and waits for input.

I tried adding "type": "stdio" in .vscode/mcp.json to no avail.