JakubMisek Has this been fixed yet? I'm running into the same issue on my Laravel project.
The issue seems to be related to projects with large dependencies, when I remove the vendor folder, the indexing step runs smoothly (with many errors of course shown in the IDE since it can't find the deps).
Coincidentally, this issue is also causing the extension to crash Visual Studio 2022, I attached the activity log for you to look at, so it's not just an issue with VSCode.
This issue is actually stopping me from switching over from JetBrains to Visual Studio, I prefer VS as an IDE.