I removed the workspace-grid directory and now it works fine. Thanks for the 
insights!
I then reinstalled workspace-grid via software center and it still works. There 
are some differences between the old and the new directory so it appears to be 
a newer release.

It seems that the extension was installed once and then not maintained
by software update. The fault seems to be not in gnome or the extension
but in the way extensions are handled by Ubuntu. They should be kept up
to date or disabled when function cannot be guaranteed. Should I report
another issue for this somewhere or is it by design?

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https://bugs.launchpad.net/bugs/1815121

Title:
  Nautilus chashes on login

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