Xtensa-esp32-elf-g++: not found

Cant compile ESPHome on ESP32 - previously working or completely new yaml files both fail

I’ve seen posts around that say this issue has been fixed in 2022.12.1… but i am running 2022.12.3 (Latest through HA addon)

Any ideas?

INFO Reading configuration /config/esphome/outside-test.yaml...
INFO Generating C++ source...
INFO Compiling app...
Processing outside-test (board: esp32dev; framework: arduino; platform: platformio/espressif32 @ 5.2.0)
--------------------------------------------------------------------------------
HARDWARE: ESP32 240MHz, 320KB RAM, 4MB Flash
 - toolchain-xtensa-esp32 @ 8.4.0+2021r2-patch3
LDF: Library Dependency Finder -> https://bit.ly/configure-pio-ldf
Dependency Graph
|-- AsyncTCP-esphome @ 1.2.2
|-- WiFi @ 2.0.0
|-- FS @ 2.0.0
|-- Update @ 2.0.0
|-- ESPAsyncWebServer-esphome @ 2.1.0
|   |-- AsyncTCP-esphome @ 1.2.2
|-- DNSServer @ 2.0.0
|-- ESPmDNS @ 2.0.0
|-- noise-c @ 0.1.4
|   |-- libsodium @ 1.10018.1
Compiling /data/outside-test/.pioenvs/outside-test/src/esphome/components/api/api_connection.cpp.o
sh: 1: xtensa-esp32-elf-g++: not found
Compiling /data/outside-test/.pioenvs/outside-test/src/esphome/components/api/api_frame_helper.cpp.o
sh: 1: xtensa-esp32-elf-g++: not found
Compiling /data/outside-test/.pioenvs/outside-test/src/esphome/components/api/api_pb2.cpp.o
sh: 1: xtensa-esp32-elf-g++: not found
*** [/data/outside-test/.pioenvs/outside-test/src/esphome/components/api/api_connection.cpp.o] Error 127
*** [/data/outside-test/.pioenvs/outside-test/src/esphome/components/api/api_frame_helper.cpp.o] Error 127
*** [/data/outside-test/.pioenvs/outside-test/src/esphome/components/api/api_pb2.cpp.o] Error 127
Compiling /data/outside-test/.pioenvs/outside-test/src/esphome/components/api/api_pb2_service.cpp.o
sh: 1: xtensa-esp32-elf-g++: not found
*** [/data/outside-test/.pioenvs/outside-test/src/esphome/components/api/api_pb2_service.cpp.o] Error 127
========================== [FAILED] Took 6.86 seconds ==========================