Porting "Fixing database selection logic and adding state indicators (#22710)"

[Benjin Dubishar (Benjin)]

Description

Original PR: #22710
Bug: #22711

🤖 This PR was automatically created by the Release Manager agent to port a fix to the release branch.

Code Changes Checklist

• New or updated unit tests added
• All existing tests pass (npm run test)
• Code follows contributing guidelines
• Telemetry/logging updated if relevant
• No regressions or UX breakage

Reviewers: Please read our reviewer guidelines

[github-actions]

PR Changes

Category	Target Branch	PR Branch	Difference
vscode-mssql VSIX	80659 KB	80660 KB	⚪ 1 KB ( 0% )
sql-database-projects VSIX	2899 KB	2899 KB	⚪ 0 KB ( 0% )
data-workspace VSIX	202 KB	202 KB	⚪ 0 KB ( 0% )
keymap VSIX	7 KB	7 KB	⚪ 0 KB ( 0% )

[Codecov Comments Bot (codecov-commenter)]

Codecov Report

✅ All modified and coverable lines are covered by tests.
⚠️ Please upload report for BASE (release/1.45@d863cd5). Learn more about missing BASE report.

Additional details and impacted files

@@               Coverage Diff               @@
##             release/1.45   #22712   +/-   ##
===============================================
  Coverage                ?   87.72%           
===============================================
  Files                   ?      340           
  Lines                   ?   119790           
  Branches                ?      552           
===============================================
  Hits                    ?   105082           
  Misses                  ?    14708           
  Partials                ?        0           

Flag	Coverage Δ
data-workspace	78.34% <ø> (?)
mssql	88.70% <100.00%> (?)
sqlproj	79.57% <ø> (?)

Flags with carried forward coverage won't be shown. Click here to find out more.

Files with missing lines	Coverage Δ
...l/src/controllers/dacpacDialogWebviewController.ts	97.85% <100.00%> (ø)
...tensions/mssql/src/webviews/common/locConstants.ts	86.61% <100.00%> (ø)

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