Upload Filesystem Image OTA fails for ESP8266 d1_mini board

[imsunburnt]

Upload Filesystem Image OTA fails in this version of Visual Studio Code that is targeting ESP8266 d1_mini.
Also, I have v3.0.0 of PlatformIO IDE extension installed.

Version: 1.75.1 (user setup)
Commit: 441438abd1ac652551dbe4d408dfcec8a499b8bf
Date: 2023-02-08T21:32:34.589Z
Electron: 19.1.9
Chromium: 102.0.5005.194
Node.js: 16.14.2
V8: 10.2.154.23-electron.0
OS: Windows_NT x64 10.0.19045
Sandboxed: No

Output:

Executing task in folder ttp223-contact-switch: C:\Users\dave.platformio\penv\Scripts\platformio.exe run --target uploadfsota --environment d1_mini
...
Uploading .pio\build\d1_mini\spiffs.bin
21:29:49 [DEBUG]: Options: {'esp_ip': 'ttp223-contact-switch-2.local', 'host_ip': '0.0.0.0', 'esp_port': 8266, 'host_port': 52751, 'auth': '', 'image': '.pio\build\d1_mini\spiffs.bin', 'spiffs': False, 'debug': True, 'progress': True}

Note the setting: 'spiffs': False

My platformio.ini file:

[platformio]
hostname = ttp223-contact-switch

[env:d1_mini]
platform = espressif8266
board = d1_mini
framework = arduino
monitor_speed = 115200
upload_speed = 921600
build_flags = '-D HOSTNAME="${platformio.hostname}"' '-D MDNSNAME="${platformio.hostname}"' '-D OTANAME="${platformio.hostname}"'
monitor_port = COM[3]
upload_port = ${platformio.hostname}.local
upload_protocol = espota

The command Upload Filesystem Image does work fine and uploads using OTA.