Visual Studio 2022 wix project compiles a Wix bundle with the WixStandardBootstrapperApplication with an error:

Severity Code Description Project File Line Suppression State
Error WIX0200 The BootstrapperApplication element contains an
unhandled extension element ‘WixStandardBootstrapperApplication’.
Please ensure that the extension for elements in the
‘http://wixtoolset.org/schemas/v4/wxs/bal’ namespace has been
provided. HippotizerV5Installer C:UserspcDocumentsghgitHippoR6InstallerWixMsiPackage.wxs 25

Do I need to do any extra steps to install the extension? i already have WixToolset.Bal.wixext and WixToolset.Bootstrapper.Native.Core nuget packages installed

Installation steps:
In Developer Powershell for 2022:

dotnet tool install --global wix --version 4.0.5

You can invoke the tool using the following command: wix Tool ‘wix’
(version ‘4.0.5’) was successfully installed.

wix --version

4.0.5+b9b2f1b4

Building wix4 project within Visual Studio 2022 works absolutely fine for using wix scehmas:

<Wix xmlns="http://wixtoolset.org/schemas/v4/wxs"
     xmlns:netfx="http://wixtoolset.org/schemas/v4/wxs/netfx"
     xmlns:ui="http://wixtoolset.org/schemas/v4/wxs/ui">

I can see the .msi, install and uninstall fine.

Now I switch to using a Bundle.

<Wix xmlns="http://wixtoolset.org/schemas/v4/wxs"
     xmlns:netfx="http://wixtoolset.org/schemas/v4/wxs/netfx"
     xmlns:ui="http://wixtoolset.org/schemas/v4/wxs/ui"
     xmlns:bal="http://wixtoolset.org/schemas/v4/wxs/bal">

    <Bundle
        Name="testapp"
        Version="1.0.0"
        UpgradeCode="01234567-89AB-CDEF-0123-456789ABCDEF"
        Compressed="no"
        SplashScreenSourceFile="placeholder.jpg">

        <BootstrapperApplication>
            <bal:WixStandardBootstrapperApplication
                LicenseUrl=""
                Theme="hyperlinkLicense" />
        </BootstrapperApplication>
        
        <Chain>
            <PackageGroupRef Id="ThirdPartyInstallers" />
        </Chain>
        
    </Bundle>

    <Fragment>
        <PackageGroup Id="ThirdPartyInstallers">

            <!-- Microsoft Sync Framework -->
            <MsiPackage Id="Synchronisation" SourceFile="Synchronization.msi" />
            <MsiPackage Id="ProviderServices" SourceFile="ProviderServices.msi" />

            <!-- Npcap packet inspection library -->
            <ExePackage
                Compressed="no"
                DetectCondition="WixBundleInstalled=1"
                Permanent="no"
                InstallCondition="WixBundleInstalled=0"
                UninstallArguments=""
                Vital="yes"
                SourceFile="npcap-0.96.exe" />

        </PackageGroup>
    </Fragment>

</Wix>

I am now faced with the final error:

Severity Code Description Project File Line Suppression State
Error WIX0200 The BootstrapperApplication element contains an
unhandled extension element ‘WixStandardBootstrapperApplication’.
Please ensure that the extension for elements in the
‘http://wixtoolset.org/schemas/v4/wxs/bal’ namespace has been
provided. HippotizerV5Installer C:UserspcDocumentsghgitHippoR6InstallerWixMsiPackage.wxs 25

I have installed Wix Heat via here: https://www.firegiant.com/wix/heatwave/
I also cannot see Burn in the projects “Wix Extension” group.

HEre is my Nuget Package Managers installed WixToolset for the solution: