Shared process crashes at startup when child helper executable vsce-sign.exe is blocked by enterprise policy
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Description
Does this issue occur when all extensions are disabled?: Yes/No
Environment:
- VS Code Version: seen on 1.134.0/ 1.135.0
and recent previous builds
- OS: Windows 11
- Install type: Windows x64 ZIP build
- Corporate environment: VSCode.exe/Code.exe itself is approved, but child executables launched by VS Code are blocked by endpoint policy unless separately approved
Policy block:
VS Code attempts to launch `vsce-sign.exe`, published by Microsoft Corporation. The endpoint policy blocks it because it is a child executable launched by VS Code and is not separately approved. This is not specific to the Downloads folder; moving the VS Code folder does not avoid the policy unless the helper executable itself is approved.
Expected:
If `vsce-sign.exe` cannot be launched due to enterprise policy, VS Code should handle the failure gracefully, log a clear diagnostic naming the helper executable and operation, and continue startup where possible.
Actual:
The shared process crashes and VS Code displays only a generic restart warning:
"A shared background process terminated unexpectedly. Please restart the application to recover."
Notes:
This appears to be a VS Code robustness/diagnostics issue rather than a request to bypass enterprise policy. The executable block is intentional in our environment. The problem is that VS Code does not degrade gracefully or clearly explain that a Microsoft helper executable (`vsce-sign.exe`) failed to launch.
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Assessment
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