Git - Branch on new local repo fails

Does this issue occur when all extensions are disabled?: Yes

• VS Code Version: 1.85.0 (user setup) commit af28b32d7
• OS Version: Windows_NT x64 10.0.22621

Steps to Reproduce:

1. Create new folder and enter folder: mkdir test1 && cd test1

2. Open vscode: `code . --disable-extensions

3. Use activity bar to initialize new repo

4. Create new text file but don't check it in

5. Use command palette to create new branch Git: Create Branch with name test

6. Get error - "Error: Git: fatal: Head is not a commit and a branch test cannot be created from it"

   

7. Show git command:

   > git checkout -q -b test --no-track HEAD
   fatal: 'HEAD' is not a commit and a branch 'test' cannot be created from it
   

8. Reproduce branch in terminal: git checkout -b test => success