How to fix .NET Core: Could not execute because the application was not found or a compatible .NET SDK is not installed.

Problem:

You are trying to run a .NET core command using e.g.

dotnet new console

but you see this error message:

Could not execute because the application was not found or a compatible .NET SDK is not installed.
Possible reasons for this include:
  * You intended to execute a .NET program:
      The application 'new' does not exist.
  * You intended to execute a .NET SDK command:
      It was not possible to find any installed .NET SDKs.
      Install a .NET SDK from:
        https://aka.ms/dotnet-download

Solution:

You didn’t install a .NET Core SDK, only the .NET Core host.

Install the SDK by using e.g. (this command works on Debian & Ubuntu)

sudo apt -y install dotnet-sdk-5.0

You might need to select the correct version (5.0 in this example).