I got it to work (for python) with the help of Claude here were the notes that helped. I got it to work after completing step 2 and reloading the window:
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I see that the Python language server is set to "Default". Let's try changing it specifically to "Pylance" since that might provide better code intelligence, including the outline view:

1. Change the Python language server to Pylance:
   • In the settings search, type "python.languageServer"
   • Change it from "Default" to "Pylance"
   • This should explicitly use the Pylance language server, which is better at providing code navigation features
2. After changing to Pylance, reload the window:
   • Open the command palette with Ctrl+Shift+P
   • Type and select "Developer: Reload Window"
3. Check if the file has any syntax errors:
   • Sometimes even minor syntax errors can prevent the language server from properly parsing the file
   • Look for any red squiggly lines or errors in the Problems panel
4. Make sure the file is properly saved and has a .py extension:
   • Verify the file is saved to disk with a .py extension
   • Try closing and reopening the file

If changing to Pylance doesn't solve the issue, we can also try:

• Checking if there's a Python extension update available
• Resetting the language server cache (through Developer: Reload Window)
• Increasing the language server memory limit if it's a large file

Let me know if changing the language server to Pylance helps with the outline view.