Answer
Please reference the Nordic Migration Guide for nRF Connect SDK v2.8.0 for the required changes to use the nRF Connect SDK in VS Code with the BL54 series modules.
https://docs.nordicsemi.com/bundle/ncs-latest/page/nrf/releases_and_maturity/migration/migration_guide_2.8.html
Be sure to reference the requirements for the specific board based on the chipset.
Note: If you are using a BL54H20 engineering DVK, based on Rev B silicon, you MUST follow the steps for Rev B silicon. Then select the nrf54h20dk/nrf54h20dk/cpuapp as the board target and set the Revision to 0.8.0.