Copilot not running commands in vscode Integrated terminal

### Description

I just updated the VS code and the copilot stopped running command in the integrated terminal please fix this issue

### Issue Details

Item|Value
---|---
Issue Category|Bug
Target|Visual Studio Code
VS Code Version|Code 1.138.0 (7debcd0e2acdea1c52de81bf9ee1620444407dda, 2026-09-15T07:24:32Z)
OS Version|Windows_NT x64 10.0.26200

System Info

Item|Value
---|---
VS Code Version|Code 1.138.0 (7debcd0e2acdea1c52de81bf9ee1620444407dda, 2026-09-15T07:24:32Z)
OS Version|Windows_NT x64 10.0.26200
CPUs|AMD EPYC 7763 64-Core Processor (16 x 2445)
GPU Status|2d_canvas: unavailable_software
GPU0: VENDOR= 0x1414, DEVICE=0x008c [Microsoft Basic Render Driver], DRIVER_VENDOR=Microsoft, DRIVER_VERSION=10.0.26100.9278 *ACTIVE*
GPU1: VENDOR= 0x1414, DEVICE=0x008c [Microsoft Basic Render Driver], DRIVER_VERSION=10.0.26100.9278
GPU2: VENDOR= 0x1414, DEVICE=0x008c [Microsoft Basic Render Driver], DRIVER_VERSION=10.0.26100.9278
Machine model name:
Machine model version:
direct_rendering_display_compositor: disabled_off_ok
gpu_compositing: disabled_software
multiple_raster_threads: enabled_on
opengl: disabled_off
rasterization: disabled_software
raw_draw: disabled_off_ok
skia_graphite: disabled_off
trees_in_viz: disabled_off
video_decode: disabled_software
video_encode: disabled_software
webgl: unavailable_software
webgpu: unavailable_software
webnn: unavailable_software
Load (avg)|
Memory (System)|63.95GB (44.23GB free)
Process Argv|--crash-reporter-id f5fb0c86-f6bf-4493-926f-cb0d140f2cff
Screen Reader|no
VM|0%
User Agent|Mozilla/5.0 (Windows NT 10.0; Win64; x64) AppleWebKit/537.36 (KHTML, like Gecko) Code/1.138.0 Chrome/148.0.7778.280 Electron/42.10.0 Safari/537.36
Installation pure|true

Extensions (7)

Name|Identifier|Author|Version
---|---|---|---
Agency|microsoft.agency|Microsoft|1.0.260820001
Python Debugger|ms-python.debugpy|ms-python|2026.6.0
Python|ms-python.python|ms-python|2026.4.0
Pylance|ms-python.vscode-pylance|ms-python|2026.3.1
Python Environments|ms-python.vscode-python-envs|ms-python|1.36.0
YAML|redhat.vscode-yaml|redhat|1.24.0
Microsoft 365 Agents Toolkit|teamsdevapp.ms-teams-vscode-extension|TeamsDevApp|6.16.0

Theme extensions: 9

A/B Experiments

```
vsliv368cf:30146710
vswsl492:30256859
binariesv615:30325510
nativeloc1:31344060
dwcopilot:31170013
dwoutputs:31242946
copilot_t_ci:31333650
e5gg6876:31282496
pythonrdcb7:31342333
6518g693:31463988
aj953862:31281341
envsactivate1:31551504
478i5457:31544283
cloudbuttont:31379625
3efgi100_wstrepl:31403338
ec5jj548:31422691
metis_rerank_treatment1:31422731
cp_cls_t_966_ss:31526232
4je02754:31466945
c3h7c220:31478652
ge8j1254_inline_auto_hint_haiku:31490510
cp_cls_c_1081:31454833
conptydll_true:31498968
e9c30283:31461165
c9b86496:31447327
ei9d7968:31496641
chat:31457767
8hig5102:31480529
89g7j272:31518289
i2gc6536:31499202
52612955:31516516
ddid_c:31478207
hmra_i5g22:-9
ja75b849:31580633
7df3h592:31512476
cp_cls_t_1082:31535311
logging_enabled_new:31498466
db5d2638:31499441
jb_cp_cls_t_632:31543129
56dj4588:31512888
32d76977:31512328
ha629193:31508444
a1ije391_t:31540920
jbcp_cls_pctr_t:31531130
3f904173:31522231
cp_intellij_t_nes:31548657
d7b18187:31526828
ahp-both-windows:31556933
ihg5j128:31534457
7g2b5551:31542111
enable_editor_pane_layout:31569726
allow-none:31555437
ac562147:31564510
c7c27ce7:31554789
voicemodeon:31566387
1h923230:31564177
gpt56sol_default:31583163
treatment-23-1:31555779
unuse_dynamic_mcp:31555281
0d8dfbc3:31570291
a1hcc538:31559322
maidictation:31565331
0c1h4866:31566224
vrbsty_tr:31561058
session-mark-done:31558131
5b8j3302:31564601
autotiers:31581918
mangle-name-treatment:31572634
signed-out-control:31584138
intellij_nes_preview_t:31580086
39a5d156:31574986
2bfb8b39:31576696
accent:31581110
aw-autom-on:31583758
revealsession_control_7ed7e840:31582193
permission_prompt_treatment:1294978
ccr_pr_nudge_adoption:1319471
vsc_wsm_t:1340632
jidc7660:1370295
ce50c479:1394298
1g5a5742:1379227
3aced641:1389836
```

### Attachments