Been having issues with the latest Pylance for VS Code not properly following arcpy imports and specifically hanging up the Pylance server on the arcpy imports meaning all syntax highlighting for any python script is lost.
Not sure if this is an ESRI bug (the hangup makes me think it might have something to do with the licensing server?), but as of now the workaround is reverting back to v2023.7.40
Example of what the latest Pylance shows:
Example of proper behavior with the old Pylance