Debugger times out with no terminal output

System Details

• Operating system name and version: Windows 10
• VS Code version: 1.11.2
• PowerShell extension version: 0.12.2
• Output from $PSVersionTable:

Name                           Value
----                           -----
PSVersion                      5.1.14393.1066
PSEdition                      Desktop
PSCompatibleVersions           {1.0, 2.0, 3.0, 4.0...}
BuildVersion                   10.0.14393.1066
CLRVersion                     4.0.30319.42000
WSManStackVersion              3.0
PSRemotingProtocolVersion      2.3
SerializationVersion           1.1.0.1

PS C:\Users\andrewsav> code -v
1.11.2
6eaebe3b9c70406d67c97779468c324a7a95db0e
PS C:\Users\andrewsav> $pseditor.EditorServicesVersion

Major  Minor  Build  Revision
-----  -----  -----  --------
0      12     1      0


PS C:\Users\andrewsav> code --list-extensions --show-versions
DavidAnson.vscode-markdownlint@0.7.1
ksubedi.net-core-project-manager@0.3.6
mitaki28.vscode-clang@0.2.2
ms-vscode.cpptools@0.10.5
ms-vscode.csharp@1.8.1
ms-vscode.PowerShell@0.12.2
sandcastle.whitespace@0.0.4
swyphcosmo.spellchecker@1.2.13
twxs.cmake@0.0.17
vector-of-bool.cmake-tools@0.9.4
PS C:\Users\andrewsav> $PSVersionTable

Name                           Value
----                           -----
PSVersion                      5.1.14393.1066
PSEdition                      Desktop
PSCompatibleVersions           {1.0, 2.0, 3.0, 4.0...}
BuildVersion                   10.0.14393.1066
CLRVersion                     4.0.30319.42000
WSManStackVersion              3.0
PSRemotingProtocolVersion      2.3
SerializationVersion           1.1.0.1

Issue Description

Open VS Code. Select "New File" from the menu. Type "Test 1" | Write-Output and then press enter. Press Ctrl+s and save the file as test1.ps1. Select "New Window" from the menu to open a second window. In the second window select "New File" from the menu. Type "Test 2" | Write-Output and then press enter. Press Ctrl+s and save the file as test2.ps1. Press F5 to run the script. Observe Test 2 printed out to the console. Close the second window. In the first windows press F5 to run the script. Observe nothing happening for a few dozen seconds and then error message "Timed out waiting for the PowerShell extension to start.". Nothing is printed out to the console.

Attached Logs

logs.zip

Start by reproducing the two-window sequence described in the issue with the PowerShell extension, then inspect the attached logs.zip for the startup timeout. Done means pressing F5 in the first window starts the extension and prints the script output instead of timing out.