Workspace should not need to be "trusted" to create a terminal

Type: Bug

I opened a folder in VSCode that I've never opened before, and then I tried to open a terminal. VSCode threw up the "do you trust this folder" dialog, because "opening a terminal requires executing code".

This is utter nonsense—if someone has their terminal configured to execute arbitrary code when they so much as cd into a folder, that's on them, not on VSCode. There is absolutely no reason VSCode should be executing any code inside that folder on its own behalf when launching a terminal.

The reason this is a problem is because it creates a perverse incentive to trust everything. The less functionality VSCode offers in "untrusted" mode, the more the user is incentivized to just hit the "Trust" button so they can get their work done—especially if the work is, itself, vetting the code!

Please reserve the "trust" dialog for things that *actually need to trust the content of the folder*. cd'ing into it, or launching a terminal in it, is not one of those things—this is the most basic operation it is possible to do. I literally cannot think of an operation on a directory tree that requires less trust of the tree than `cd`.

VS Code version: Code 1.136.2 (88e44fa0e00b08f7758b4f6d05632e4fd5e4df6f, 2026-09-04T21:40:42Z)
OS version: Darwin arm64 25.6.0
Modes:

System Info

|Item|Value|
|---|---|
|CPUs|Apple M5 Max (18 x 2400)|
|GPU Status|2d_canvas: enabled
GPU0: VENDOR= 0x106b [Google Inc. (Apple)], DEVICE=0x0000 [ANGLE (Apple, ANGLE Metal Renderer: Apple M5 Max, Version 26.6.2 (Build 25G83))], DRIVER_VENDOR=Apple, DRIVER_VERSION=26.6.2 *ACTIVE*
Machine model name: Mac
Machine model version: 17.6
direct_rendering_display_compositor: disabled_off_ok
gpu_compositing: enabled
multiple_raster_threads: enabled_on
opengl: enabled_on
rasterization: enabled
raw_draw: disabled_off_ok
skia_graphite: enabled_on
trees_in_viz: disabled_off
video_decode: enabled
video_encode: enabled
webgl: enabled
webgpu: enabled
webnn: disabled_off|
|Load (avg)|2, 1, 1|
|Memory (System)|128.00GB (35.08GB free)|
|Process Argv|--crash-reporter-id 25ee660c-d4c7-4807-bc71-ae40f802f1f4|
|Screen Reader|no|
|VM|0%|
Extensions (65)

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Claude Code for VS Code|anthropic.claude-code|Anthropic|2.1.263
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markdownlint|davidanson.vscode-markdownlint|DavidAnson|0.62.1
jq Playground — JSON Filter Notebook|davidnussio.vscode-jq-playground|davidnussio|5.0.7
ESLint|dbaeumer.vscode-eslint|dbaeumer|3.0.34
Binary Plist|dnicolson.binary-plist|dnicolson|2.0.0
Docker DX|docker.docker|docker|0.18.0
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Magic Racket|evzen-wybitul.magic-racket|evzen-wybitul|0.9.0
Vscode Google Translate|funkyremi.vscode-google-translate|funkyremi|1.5.0
HTML Preview|george-alisson.html-preview-vscode|george-alisson|0.2.5
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Go|golang.go|golang|0.56.1
HashiCorp Terraform|hashicorp.terraform|hashicorp|2.40.0
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Container Tools|ms-azuretools.vscode-containers|ms-azuretools|2.5.0
Docker|ms-azuretools.vscode-docker|ms-azuretools|2.0.0
Playwright Test for VSCode|ms-playwright.playwright|ms-playwright|1.1.19
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Python Debugger|ms-python.debugpy|ms-python|2026.6.0
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Python Environments|ms-python.vscode-python-envs|ms-python|1.36.0
Jupyter Keymap|ms-toolsai.jupyter-keymap|ms-toolsai|1.1.2
Remote - SSH|ms-vscode-remote.remote-ssh|ms-vscode-remote|0.128.0
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WSL|ms-vscode-remote.remote-wsl|ms-vscode-remote|0.104.3
Remote Development|ms-vscode-remote.vscode-remote-extensionpack|ms-vscode-remote|0.26.0
Makefile Tools|ms-vscode.makefile-tools|ms-vscode|0.12.17
Remote Explorer|ms-vscode.remote-explorer|ms-vscode|0.5.0
Remote - Tunnels|ms-vscode.remote-server|ms-vscode|1.5.3
Word Count|ms-vscode.wordcount|ms-vscode|0.1.0
Go Test Explorer|premparihar.gotestexplorer|premparihar|0.1.13
XML|redhat.vscode-xml|redhat|0.29.3
LLVM IR Language Support|revng.llvm-ir|revng|1.0.5
LLVM|rreverser.llvm|RReverser|0.2.0
rust-analyzer|rust-lang.rust-analyzer|rust-lang|0.3.3041
Coverage Gutters|ryanluker.vscode-coverage-gutters|ryanluker|2.14.0
Trailing Spaces|shardulm94.trailing-spaces|shardulm94|0.4.4
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Code Spell Checker|streetsidesoftware.code-spell-checker|streetsidesoftware|4.7.3
Svelte for VS Code|svelte.svelte-vscode|svelte|110.3.1
Even Better TOML|tamasfe.even-better-toml|tamasfe|0.21.2
OpenCode GUI|tanishqkancharla.opencode-vscode|TanishqKancharla|0.4.4
TLA+ (Temporal Logic of Actions)|tlaplus.vscode-ide|tlaplus|2026.9.41716
Markdown Admonitions|tomasdahlqvist.markdown-admonitions|tomasdahlqvist|0.9.1
CodeLLDB|vadimcn.vscode-lldb|vadimcn|1.12.2
Vue (Official)|vue.volar|Vue|3.3.11

A/B Experiments

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jbcp_cls_pctr_t:31531130
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treatment-23-1:31555779
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maidictation:31565333
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session-archive:31558132
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ccr_pr_nudge_auto_review:1319472
vsc_wsm_t:1340632
eh853263:1370294
1g5a5742:1379227

```