Terminal crashes/closes

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 opening the terminal window, it immediately crashes and closes again.

PowerShell Version

Name                           Value
----                           -----
PSVersion                      7.6.0
PSEdition                      Core
GitCommitId                    7.6.0
OS                             macOS 26.4.1
Platform                       Unix
PSCompatibleVersions           {1.0, 2.0, 3.0, 4.0…}
PSRemotingProtocolVersion      2.4
SerializationVersion           1.1.0.1
WSManStackVersion              3.0

Visual Studio Code Version

1.119.0-insider
arm64

Extension Version

ms-vscode.powershell@2025.4.0

Steps to Reproduce

from the menu I click terminal > new terminal. as soon as it opens it closes again

Visuals

No response

Logs

No response

Start by reproducing the crash through Terminal > New Terminal using the reported PowerShell, VS Code Insiders, and extension versions. Collect the missing extension logs and compare the behavior with a standalone PowerShell instance; done means the integrated terminal opens and remains available without crashing.