Manage Extension Lifecycle for moving redwood changes from one instance to another

Summary:

I used 'Manage Extension Lifecycle' to move changes to the target instance and I received a confirmation that extension was published successfully. However, when I open any redwood page in target instance and select 'Edit using visual builder studio', I see the below message.

Is this expected? Do we need to create the environment in target instance?

Content (please ensure you mask any confidential information):

Version (include the version you are using, if applicable): 25B

Code Snippet (add any code snippets that support your topic, if applicable):