Extension host terminated unexpectedly. Please reload the window to recover.

[whattheken]

• VSCode Version: Code 1.12.2 (19222cd, 2017-05-10T13:20:36.315Z)
• OS Version: Windows_NT ia32 10.0.15063
• Extensions: none

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Steps to Reproduce:

1. Run visual studio code on Windows 10 as non-admin user (works fine as admin user)
2. Click on "reload" button results in same error again
3. Rebooting/re-install doesn't help
4. Installing previous version 1.11.2 results in same error

Nodejs v6.10.3, npm 5.0.3, git version 2.13.0

No extensions are installed. Running code with --disable-extensions makes no difference.

No exceptions noted in --verbose mode:

[main 9:02:26 PM] args: { _: [],
  help: false,
  h: false,
  version: false,
  v: false,
  wait: false,
  w: false,
  diff: false,
  d: false,
  goto: false,
  g: false,
  'new-window': false,
  n: false,
  'unity-launch': false,
  'reuse-window': false,
  r: false,
  performance: false,
  p: false,
  'prof-startup': false,
  verbose: true,
  logExtensionHostCommunication: false,
  'disable-extensions': false,
  disableExtensions: false,
  'list-extensions': false,
  'show-versions': false,
  nolazy: false }
[main 9:02:27 PM] IPC#vscode-machineId
[main 9:02:27 PM] IPC#vscode-workbenchLoaded

Setting "git.enabled": false has no impact. Folder has no git repo.

None of the solutions here work:
#23976

Removing all folders in C:\Program Files (x86)\Microsoft VS Code Insiders\resources\app\extensions causes the error to go away, but this can't be the right solution?

Help->Toggle Developer Tools-> Console shows this:

messageService.ts:125Extension host terminated unexpectedly. Please reload the window to recover.
e.doShow @ messageService.ts:125
extensionHost.ts:324Extension host terminated unexpectedly. Code:  3221225477  Signal:  null
d.onExit @ extensionHost.ts:324

This also occurs on visual studio code insider.

[whattheken]

Seems to be duplicated here:
#26628