PowerShell server timeout

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

Powershell failed to launch server timed out

PowerShell Version

Name                           Value                                                                                   
----                           -----                                                                                   
PSVersion                      5.1.26100.7920                                                                          
PSEdition                      Desktop                                                                                 
PSCompatibleVersions           {1.0, 2.0, 3.0, 4.0...}                                                                 
BuildVersion                   10.0.26100.7920                                                                         
CLRVersion                     4.0.30319.42000                                                                         
WSManStackVersion              3.0                                                                                     
PSRemotingProtocolVersion      2.3                                                                                     
SerializationVersion           1.1.0.1

Visual Studio Code Version

1.107.1
x64

Extension Version

ms-vscode.powershell@2025.4.0

Steps to Reproduce

Closeout or reboot and relaunch

Visuals

No response

Logs

First failure for Powershell server

Start by reproducing the PowerShell server timeout after closing out or rebooting, using the listed PowerShell, Visual Studio Code, and extension versions. Review the extension's server-startup diagnostics and the available first-failure log; done means the server launches without timing out or the failure is isolated to a specific component.