docs: Update section about installing extensions locally (#40636)

Release Notes:

- N/A
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Finn Evers
2025-10-19 14:30:01 +00:00
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@@ -23,11 +23,7 @@ From the extensions page, click the `Install Dev Extension` button (or the {#act
If you need to troubleshoot, you can check the Zed.log ({#action zed::OpenLog}) for additional output. For debug output, close and relaunch zed with the `zed --foreground` from the command line which show more verbose INFO level logging.
If you already have a published extension with the same name installed, your dev extension will override it.
After installing, the `Extensions` page will indicate that the upstream extension is "Overridden by dev extension".
Pre-installed extensions with the same name have to be uninstalled before installing the dev extension. See [#31106](https://github.com/zed-industries/zed/issues/31106) for more.
If you already have the published version of the extension installed, the published version will be uninstalled prior to the installation of the dev extension. After successful installation, the `Extensions` page will indicate that the upstream extension is "Overridden by dev extension".
## Directory Structure of a Zed Extension