Extension randomly runs something in the background when writing in the code pane

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

Related issues:

• 2023-11-18: https://github.com/PowerShell/PSReadLine/issues/3871
• 2023-11-27: https://github.com/Azure/azure-powershell/issues/23573
• 2024-06-25: https://github.com/PowerShell/PSReadLine/issues/4052

While writing PowerShell in the code pane the terminal suddenly seems to have ran something on my unfinished code, and must be exited with CTRL+C to stop.

In this example I was going to write Get-AzResource, only got to Get-AzResour before a warning pops up saying WARNING: Get-AzResour is not found. The most similar Azure PowerShell command is: Get-AzResource.

PowerShell Version

Name                           Value
----                           -----
PSVersion                      7.3.7
PSEdition                      Core
GitCommitId                    7.3.7
OS                             Microsoft Windows 10.0.22621
Platform                       Win32NT
PSCompatibleVersions           {1.0, 2.0, 3.0, 4.0…}
PSRemotingProtocolVersion      2.3
SerializationVersion           1.1.0.1
WSManStackVersion              3.0

Modules

Name                              Version
----                              -------
Az.Accounts                       2.13.1
Az.Network                        6.2.0
Az.Resources                      6.11.1
Microsoft.PowerShell.Management   7.0.0.0
Microsoft.PowerShell.Security     7.0.0.0
Microsoft.PowerShell.Utility      7.0.0.0
PowerShellEditorServices.Commands 0.2.0
PowerShellEditorServices.VSCode   0.2.0
PSReadLine                        2.2.6

Visual Studio Code Version

1.83.0
e7e037083ff4455cf320e344325dacb480062c3c
x64

Extension Version

ms-vscode.powershell@2023.6.0

Steps to Reproduce

Write PowerShell in the code view, suddenly something (vscode-powershell? PSReadLine?) triggers something that outputs to the terminal.

Visuals

See summary.

Logs

Tried following https://github.com/PowerShell/vscode-powershell/blob/main/docs/troubleshooting.md#logs
But there's no log directory inside %USERPROFILE%\.vscode\extensions\ms-vscode.powershell-2023.6.0, even after I added following to settings.json:

"powershell editor services.trace.server": "verbose",
"powershell.developer.editorServicesLogLevel": "Diagnostic"

Edit: Logs are apprently located at %APPDATA%\Code\User\globalStorage\ms-vscode.powershell\logs, with one new directory created at each new session.

Edit 2: I reproduced with mentioned changes to settings.json above, sent logs per email.

Start by reproducing the unexpected terminal execution while editing PowerShell, then inspect the logs under %APPDATA%\Code\User\globalStorage\ms-vscode.powershell\logs. Read docs/troubleshooting.md and compare the reported behavior with the linked PSReadLine and Azure PowerShell issues. Done means the extension no longer runs unfinished editor input unexpectedly, with a regression test or clear reproduction result.