When a new extension is added the contents of extension’s .zip file are placed in
%appdata%\Roaming\com.makeblock.Scratch3.4.10\Local Store\mBlock\libraries\EXTENSIONNAME\
When the “Edit with IDE” button is clicked, all *.h and *.cpp files are copied from the \scr folder to a new project folder.
Some projects require an assembly file *.S - these do not get copied, and thus compiling fails.
Also, some more complicated libraries have sub-folders and these do not get copied either.