Monitor setup job and add example issue documentation

Co-authored-by: eleanorjboyd <26030610+eleanorjboyd@users.noreply.github.com>

Author: Copilot

.github/workflows/EXAMPLE_ISSUE.md

@@ -0,0 +1,108 @@
+# Example: Auto-Generated CI Failure Issue
+
+This document shows what an automatically generated issue will look like when CI fails on the main branch.
+
+## Example Issue 1: Single Job Failure
+
+**Title:** `CI Failure on main: lint`
+
+**Labels:** `ci-failure`, `bug`, `needs-triage`
+
+**Body:**
+```markdown
+## CI Failure Report
+
+The following jobs failed on the main branch:
+- **lint**
+
+**Workflow Run:** https://github.com/microsoft/vscode-python/actions/runs/7234567890
+**Commit:** abc123def4567890abcdef1234567890abcdef12
+**Commit Message:** Add new feature for environment detection
+**Author:** @contributor
+
+Please investigate and fix the failure.
+
+---
+*This issue was automatically created by the CI system.*
+```
+
+---
+
+## Example Issue 2: Multiple Job Failures
+
+**Title:** `CI Failure on main: lint, tests, smoke-tests`
+
+**Labels:** `ci-failure`, `bug`, `needs-triage`
+
+**Body:**
+```markdown
+## CI Failure Report
+
+The following jobs failed on the main branch:
+- **lint**
+- **tests**
+- **smoke-tests**
+
+**Workflow Run:** https://github.com/microsoft/vscode-python/actions/runs/7234567890
+**Commit:** def456abc7890123def456abc7890123def456ab
+**Commit Message:** Update testing infrastructure
+**Author:** @maintainer
+
+Please investigate and fix the failure.
+
+---
+*This issue was automatically created by the CI system.*
+```
+
+---
+
+## Example Comment on Existing Issue
+
+When a second failure occurs within 24 hours, the system adds a comment instead of creating a new issue:
+
+**Comment on existing issue:**
+```markdown
+## Additional CI Failure
+
+Another CI failure occurred:
+- **python-tests**
+- **check-types**
+
+**Workflow Run:** https://github.com/microsoft/vscode-python/actions/runs/7234567891
+**Commit:** 789ghi012345jkl6789mno012345pqr6789stu01
+**Commit Message:** Fix type annotations in discovery module
+**Author:** @developer
+```
+
+---
+
+## Benefits of This Approach
+
+1. **Immediate Notification**: Issues are created as soon as CI fails on main
+2. **Detailed Context**: Each issue includes direct links to failed runs and commit information
+3. **No Duplicate Spam**: Multiple failures within 24 hours are consolidated into one issue
+4. **Easy Triage**: Automatic labels help maintainers prioritize and categorize
+5. **Clear Ownership**: Author mentions ensure the right people are notified
+6. **Historical Record**: Issues provide a permanent record of CI stability
+
+## Workflow Integration
+
+```mermaid
+graph LR
+    A[Push to main] --> B[CI runs]
+    B --> C{All jobs pass?}
+    C -->|Yes| D[Success ✓]
+    C -->|No| E[report-failure job]
+    E --> F{Recent issue exists?}
+    F -->|Yes| G[Add comment]
+    F -->|No| H[Create new issue]
+    G --> I[Notify team]
+    H --> I
+```
+
+## Maintenance
+
+- Issues can be closed once the failure is resolved
+- The `ci-failure` label can be used to track CI stability metrics
+- Old closed issues serve as documentation for past problems
+- Team members can subscribe to the `ci-failure` label for notifications

.github/workflows/build.yml

@@ -454,14 +454,15 @@ jobs:
       always() &&
       github.repository == 'microsoft/vscode-python' &&
       github.ref == 'refs/heads/main' &&
-      (needs.build-vsix.result == 'failure' ||
+      (needs.setup.result == 'failure' ||
+       needs.build-vsix.result == 'failure' ||
        needs.lint.result == 'failure' ||
        needs.check-types.result == 'failure' ||
        needs.python-tests.result == 'failure' ||
        needs.tests.result == 'failure' ||
        needs.smoke-tests.result == 'failure')
     runs-on: ubuntu-latest
-    needs: [build-vsix, lint, check-types, python-tests, tests, smoke-tests]
+    needs: [setup, build-vsix, lint, check-types, python-tests, tests, smoke-tests]
     permissions:
       issues: write
     steps:
@@ -471,6 +472,7 @@ jobs:
           script: |
             const failedJobs = [];
             const jobs = {
+              'setup': '${{ needs.setup.result }}',
               'build-vsix': '${{ needs.build-vsix.result }}',
               'lint': '${{ needs.lint.result }}',
               'check-types': '${{ needs.check-types.result }}',