Terminal failed to start with "Access is denied" error
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Description
### Short summary
Terminal initialization fails with access denied error when attempting to spawn PowerShell process.
### Affected version or release
v1.1.8
### Installation context
GitHub Copilot installed on Windows, attempting to spawn terminal with shell integration
### What happened?
When opening a terminal session, the application fails to spawn the PowerShell process with the following error:
```
Failed to spawn PTY command: CreateProcessW `"C:\\Users\\hnaganur\\AppData\\Local\\Microsoft\\WindowsApps\\pwsh.exe -NoLogo -ExecutionPolicy Bypass -NoExit -Command \". '\\\\?\\C:\\Users\\hnaganur\\AppData\\Local\\Programs\\GitHub Copilot\\terminal-integration\\shellIntegration.ps1'\"\0"` in cwd `Some("C:\\Users\\hnaganur\\.copilot\\chats\\fd4d9613-e8fd-4251-b269-5486833858ba\0")` failed: Access is denied. (os error 5)
```
### Steps to reproduce
- Launch GitHub Copilot app
- Open or navigate to a chat session
- Attempt to open a terminal
### Expected behavior
Terminal should initialize successfully and display a ready PowerShell prompt.
### Additional context
- **Error Code:** OS error 5 (Access is denied)
- **Shell:** PowerShell (pwsh.exe)
- **Environment:** Windows
- **Attempted Integration:** Shell integration script at `terminal-integration\shellIntegration.ps1`
- **Working Directory:** `.copilot\chats\fd4d9613-e8fd-4251-b269-5486833858ba`
Contributor guide
Research direction
Reproduce the failure on Windows from the GitHub Copilot app using pwsh.exe and the reported .copilot\chats working directory. Start with the terminal launch path and terminal-integration\shellIntegration.ps1, then verify that opening a terminal completes without OS error 5 and shows a ready PowerShell prompt.
Written by the indexing model from the issue text.
Assessment
- Tech stack
- powershell
- Domain
- cli, desktop, operating-systems
- Issue type
- Bug
- Difficulty
- 3/5
- Estimated time
- 1-2 days
- Activity status
- Quiet
- Clarity
- Mostly clear
- Newbie friendliness
- 45/100