Problem with pwsh after installing a VS VCode update (Visual Studio Code 1.115)

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Assessment

Difficulty
4/5
Estimated time
3-5 days
Newbie friendliness
35/100
Issue type
Bug
Clarity
Needs clarification
Activity status
Quiet
Tech stack
powershell, typescript, vscode
Domain
devtools

Research direction

Start with the terminal process command and attached log, using the reported combination of Visual Studio Code 1.115.0, PowerShell 7.6.0, and extension 2025.5.0. Reproduce the failure after the VS Code update and identify why pwsh exits with code 1; done means the PowerShell extension starts normally in that environment.

Written by the indexing model from the issue text.

Description

Issue-Bug Needs: Triage
Prerequisites
  • I have written a descriptive issue title.
  • I have searched all open and closed issues to ensure it has not already been reported.
  • I have read the troubleshooting guide.
  • I am sure this issue is with the extension itself and does not reproduce in a standalone PowerShell instance.
  • I have verified that I am using the latest version of Visual Studio Code and the PowerShell extension.
  • If this is a security issue, I have read the security issue reporting guidance.
Summary

The terminal process "C:\Program Files\PowerShell\7\pwsh.exe '-NoProfile', '-ExecutionPolicy', 'Bypass', '-Command', 'Import-Module 'c:\Users\aclaude.vscode\extensions\ms-vscode.powershell-2025.5.0\modules\PowerShellEditorServices\PowerShellEditorServices.psd1'; Start-EditorServices -HostName 'Visual Studio Code Host' -HostProfileId 'Microsoft.VSCode' -HostVersion '2025.5.0' -BundledModulesPath 'c:\Users\aclaude.vscode\extensions\ms-vscode.powershell-2025.5.0\modules' -EnableConsoleRepl -StartupBanner "PowerShell Extension v2025.5.0 Copyright (c) Microsoft Corporation. https://aka.ms/vscode-powershell Type 'help' to get help. " -LogLevel 'Warning' -LogPath 'c:\Users\aclaude\AppData\Roaming\Code\logs\20260415T105454\window1\exthost\ms-vscode.powershell' -SessionDetailsPath 'c:\Users\aclaude\AppData\Roaming\Code\User\globalStorage\ms-vscode.powershell\sessions\PSES-VSCode-10428-179075.json' -FeatureFlags @() '" terminated with exit code: 1.

PowerShell Version
Name                           Value
----                           -----
PSVersion                      7.6.0
PSEdition                      Core
GitCommitId                    7.6.0
OS                             Microsoft Windows 10.0.26100
Platform                       Win32NT
PSCompatibleVersions           {1.0, 2.0, 3.0, 4.0.}
PSRemotingProtocolVersion      2.4
SerializationVersion           1.1.0.1
WSManStackVersion              3.0
Visual Studio Code Version
1.115.0
x64
Extension Version
ms-vscode.powershell@2025.5.0
Steps to Reproduce

Problem with pwsh after installing a VS VCode update (Visual Studio Code 1.115)

Visuals

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Logs
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Dominant language
TypeScript
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