This happens for any local React App, but I've provided a small CRA in case any automation is done.

1. Visit the locally run app on Firefox Browser. In my case, v101.0.1 (64-bit)
2. Set up open in editor URL in settings, set up open in Editor URL. I used "vscode://file/{path}"
3. On the Components pane, select any element in the page
4. Click on "Open in Editor" button

Actual result:
Nothing happens. The link does not open in my editor

Desired result:
The link should open in my VSCode editor

I think the reason why this is happening is because of a Firefox bug where window.open does not work in extensions. It is used in InspectedElement.js to open the source url. According to https://bugzilla.mozilla.org/show_bug.cgi?id=1282021, the extension should use browser.windows.create for Firefox