Format on save hangs with PowerShell v7.5.0, runs fine with v7.4.7

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

Format on save hangs with PowerShell v7.5.0, it never completes. Works fine with PowerShell v7.4.7.

I've tried with v7.5.0 managed by mise (ref: https://github.com/PowerShell/vscode-powershell/issues/5123#issuecomment-2612568256), and downloaded and unzipped v7.5.0 ZIP myself.

• Windows 11 x64 24H2
• VSCode v1.96.4
• vscode-powershell v2025.0.0
  • Also tried with preview version v2025.1.0

PowerShell Version

v7.5.0 x64 Windows

Name             : Visual Studio Code Host
Version          : 2025.1.0
InstanceId       : dd17a949-7d42-4f49-b509-b842f6923341
UI               : System.Management.Automation.Internal.Host.InternalHostUserInterface
CurrentCulture   : nb-NO
CurrentUICulture : en-US
PrivateData      : Microsoft.PowerShell.ConsoleHost+ConsoleColorProxy
DebuggerEnabled  : True
IsRunspacePushed : False
Runspace         : System.Management.Automation.Runspaces.LocalRunspace

Visual Studio Code Version

1.96.4
cd4ee3b1c348a13bafd8f9ad8060705f6d4b9cba
x64

Extension Version

ms-vscode.powershell@2025.0.0

Steps to Reproduce

• Use PowerShell v7.5.0
• Configure format on save for PowerShell in VSCode
• Open PS1 file, do changes, CTRL + S to save
• VSCode hangs, formatting never happens

Visuals

Logs

I've added following config:

{
  "powershell editor services.trace.server": "Verbose",
  "powershell.developer.editorServicesLogLevel": "Trace"
}

I see no relevant log events.

• Is "powershell editor services.trace.server" relevant anymore?

Start by reproducing format on save with PowerShell v7.5.0 and compare it with v7.4.7 using the listed VS Code and extension versions. Review the extension's trace and editor-services logs while saving a PS1 file; done means formatting completes instead of leaving VS Code hung, with the regression covered by an appropriate test.