The yellow progress bar is printed over the input prompt when Expand-Archive throws an error.

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

When Expand-Archive throws an error in a ps1 script (specifically, when an invalid file path is passed into -Path), The error is printed to the console, as expected, followed by an input prompt, as expected. But then it prints the yellow progress bar for the failed Expand-Archive process over the input prompt. If you start to type another command it starts typing yellow text over the progress bar. This only happens when running a script via the extension's run button. Calling the script from a PowerShell terminal does not print the empty progress bar.

PowerShell Version

Name                           Value
----                           -----
PSVersion                      7.5.2
PSEdition                      Core                                                                                     
GitCommitId                    7.5.2                                                                                    
OS                             Microsoft Windows 10.0.26100                                                             
Platform                       Win32NT                                                                                  
PSCompatibleVersions           {1.0, 2.0, 3.0, 4.0…}                                                                    
PSRemotingProtocolVersion      2.3                                                                                      
SerializationVersion           1.1.0.1                                                                                  
WSManStackVersion              3.0                                                                                      

Name             : Visual Studio Code Host                                                                              
Version          : 2025.2.0                                                                                             
InstanceId       : 8fd3ec5c-2571-4d2b-8f82-dab3195e1aa7
UI               : System.Management.Automation.Internal.Host.InternalHostUserInterface
CurrentCulture   : en-IE
CurrentUICulture : en-GB
PrivateData      : Microsoft.PowerShell.ConsoleHost+ConsoleColorProxy
DebuggerEnabled  : True
IsRunspacePushed : False
Runspace         : System.Management.Automation.Runspaces.LocalRunspace

Visual Studio Code Version

1.102.2
c306e94f98122556ca081f527b466015e1bc37b0
x64

Extension Version

ms-vscode.powershell@2025.2.0

Steps to Reproduce

1. Paste the following connand in a ps1 script:
   Expand-Archive -Path "Archive\That\Does\Not\Exist.zip" -DestinationPath "C:"
2. Run the script by clicking the "Run" button in vscode

Visuals

Incorrect Behaviour:

When I start typing "My next command...":

Expected Behaviour:

Logs

No response

Reproduce the issue with the provided Expand-Archive command, comparing the VS Code Run button with a PowerShell terminal. Trace the extension's run-button terminal and progress rendering path, then verify that a failed archive command leaves the prompt usable without an overlaid yellow progress bar.