Error: <command line>: cannot satisfy --package daml-script-2.6.1

I opened a Daml project folder in VScode using daml studio that was functioning well but now it gives this error:

<command line>: cannot satisfy --package daml-script-2.6.1: 
    daml-script-2.6.1 is unusable due to missing dependencies:
      daml-stdlib-2.6.1
    (use -v for more information)

I restarted the computer and reinstalled latest daml but error persists. Also tried changing daml.yaml sdk-version to 2.6.4.

Here is daml.yaml

# for config file options, refer to
# https://docs.daml.com/tools/assistant.html#project-config-file-daml-yaml

sdk-version: 2.6.1
name: fp-labs
source: daml
init-script: Main:setup
version: 0.0.1
dependencies:
  - daml-prim
  - daml-stdlib
  - daml-script

1. What daml commands are you running when you make sdk-version changes?
2. What command are you running to launch Daml Studio?
3. What is the version of the Daml extension in Code you have running? (Click gear, Extensions, pick Daml, main window should show version. This does not necessarily match your daml.yaml)

Additionally, it would be worth providing the further details requested in this previous similar issue as well:

Daml Studio (Vs Code) Problem Features & Bugs

I have not been able to reproduce the issue. Do you have any more clues? For example, Is the daml.yaml file in the folder that VS Code is open to? Do you have multiple daml.yaml files in your folder and subfolders? If the daml.yaml is in a subfolder, do the Daml features start working if you open VS Code to the folder with the daml.yaml? Would you be willing to post your daml.yaml?

I had not made any sdk-version changes when I saw this error. I simply went to the project folder and opened VSCode using

daml studio

to open the project.

However, now the error is gone. I opened some other project and saw that it was working fine. Came back to the project with the error and I do not see that error any more, so not sure what changed.

Thanks anyways for your quick responses! If I see the error again, I will surely catch the details you have asked for!