Drupal - Error when creating a custom Twig filter

The problem in the code above is that your Twig extension class is extending the internal Drupal Twig extension class. That breaks the Twig extensions added by Drupal core and that's why you are getting the error.

To fix this, you should make your Twig extensions extend Twigs internal Twig extension class. Your class should be defined like this:

class MyExtension extends \Twig_Extension {

After making that change, you can also remove arguments set for that class from the MODULE.services.yml