I can reproduce this on Windows with VS Code 1.133.0 Stable and its bundled GitHub Copilot 0.61.0.

Does this issue occur when all extensions are disabled?: Yes/No

- VS Code Version:
- OS Version:

Steps to Reproduce:

1. I can reproduce this on Windows with VS Code 1.133.0 Stable and its bundled GitHub Copilot 0.61.0.

This has interrupted development for approximately three to four months. Disabling ordinary marketplace extensions does not stop it because the implicated extension is bundled under VS Code's own `resources/app/extensions/copilot` directory.

Across two captured failing sessions, the VS Code main logs record **17 extension-host exits with code 134**. Every replacement host activates `GitHub.copilot-chat`. The extension-host log repeatedly contains the same stack reported in this issue:

TypeError: e is not iterable
at ...setItems (.../resources/app/extensions/copilot/dist/extension.js:1074:19961)
at ..._computeFn (.../resources/app/extensions/copilot/dist/extension.js:1074:19700)
at ..._recompute (.../resources/app/extensions/copilot/dist/extension.js:1074:11919)
at ...recomputeInitiallyAndOnChange (.../resources/app/extensions/copilot/dist/extension.js:1074:1092)
at NI.init (.../resources/app/extensions/copilot/dist/extension.js:2423:10372)
at Timeout._onTimeout (.../resources/app/extensions/copilot/dist/extension.js:3:12)

The `NI.init` code in this bundle initializes Copilot's Git repository observer. Copilot also repeatedly logs:

Failed to create database. Falling back to in-memory db: Error: unable to open database file

I performed a direct A/B comparison on the same installation and workspace:

- Normal launch with bundled Copilot active: repeated code-134 extension-host aborts.
- Launch with `--disable-extension GitHub.copilot --disable-extension GitHub.copilot-chat`: Copilot does not activate, while the built-in Git, GitHub authentication, JSON, TypeScript, and other built-in extensions continue running normally. No extension-host exit appears in the captured comparison session.

Restarting Windows only suppresses the problem temporarily, usually for one or two days. The explicit Copilot disable flags are the only reliable workaround found so far, but a VS Code update or normal relaunch can bring the issue back.

Environment:

VS Code: 1.133.0 Stable
VS Code commit: a5b500951314efd502d07465bd138dfbd714a960
Bundled GitHub Copilot: 0.61.0
Copilot bundle commit metadata: 94c8e2adc50e26ef70af85a0de3a9efed757acaa
OS: Windows x64

I have attached a redacted diagnostic package containing both failing sessions, the stable no-Copilot comparison, a detailed timeline, and SHA-256 checksums. The local logs do not contain the final native fatal-error line, so I can prove the Copilot activation/stack/crash correlation but cannot independently confirm the precise native mechanism behind exit code 134.
2.

[vscode-copilot-extension-host-crash-20260817-redacted.zip](https://github.com/user-attachments/files/31142222/vscode-copilot-extension-host-crash-20260817-redacted.zip)