PowerShell extension doesn't start on slow machines

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

Whenever I start VS Code for the first time in a Windows session, PowerShell extension starts with a warning.

Moreover, closing the terminal session results in the below mentioned error.

Plus, the PowerShell extension banner message is looking odd:

PowerShell Version

Name                           Value
----                           -----
PSVersion                      7.4.4
PSEdition                      Core
GitCommitId                    7.4.4
OS                             Microsoft Windows 10.0.19045
Platform                       Win32NT
PSCompatibleVersions           {1.0, 2.0, 3.0, 4.0.}
PSRemotingProtocolVersion      2.3
SerializationVersion           1.1.0.1
WSManStackVersion              3.0

Visual Studio Code Version

1.92.1
x64

Extension Version

ms-vscode.powershell@2024.2.2

Steps to Reproduce

1. Launch a Windows session on a slow machine
2. Right-click a PowerShell file and select "Open in Visual Studio Code" context menu item.
3. Immediately open the terminal window using the keyboard shortcut +<Ö>.

Visuals

No response

Logs

21.8.2024 16:17:03 [NORMAL] - Visual Studio Code: v1.92.1 64-bit on Windows 64-bit

21.8.2024 16:17:03 [NORMAL] - PowerShell Extension: v2024.2.2

21.8.2024 16:17:03 [NORMAL] - Starting 'PowerShell (x64)' at: C:\Program Files\PowerShell\7\pwsh.exe

21.8.2024 16:17:04 [NORMAL] - PowerShell process started with PID: 9012

21.8.2024 16:17:07 [WARNING] - PowerShell process terminated or Extension Terminal was closed, PID: 9012

21.8.2024 16:17:08 [ERROR] - Extension Terminal is undefined.

21.8.2024 16:17:09 [ERROR] - PowerShell Language Server process didn't start!

Start by reproducing the Windows slow-machine sequence in the issue: launch VS Code, open the PowerShell file, and immediately open the terminal while capturing the extension logs. Done means the PowerShell extension starts without the warning, the banner displays correctly, and closing the terminal does not produce the reported errors.