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Nef-
'toher way round. Attach the extension so its under the bars (i.e. between your front wheel and bottom the bars). Then attach the bag as normal to the bars. Rotate the extension forward enough to push the bag out of the way of the cable, and loop the back strap round the extension to hold it in place.
does that make sense?
spotter
cheapo solution is one of these https://www.ebay.co.uk/itm/403889591826