VS code keeps terminal hostage when launching

[Ceelbc]

Type: Bug

Go to your project folder in Windows 11.
Right click & press 'open in terminal' (alternatively: 'open powershell here')
type the powershell command: code ./; exit
This should launch vs code with the current folder as project root, and close the terminal window.
However, it keeps the terminal window opend.
When closing vs code; the terminal does close as well.

VS Code version: Code 1.80.1 (74f6148, 2023-07-12T17:22:07.651Z)
OS version: Windows_NT x64 10.0.22621
Modes:

System Info

Item	Value
CPUs	Intel(R) Core(TM) i5-10210U CPU @ 1.60GHz (8 x 2112)
GPU Status	2d_canvas: enabled canvas_oop_rasterization: disabled_off 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 video_decode: enabled video_encode: enabled vulkan: disabled_off webgl: enabled webgl2: enabled webgpu: enabled
Load (avg)	undefined
Memory (System)	15.76GB (6.36GB free)
Process Argv	./ --crash-reporter-id 343c61fb-4136-4991-8224-0b18616cfa50
Screen Reader	yes
VM	50%

Extensions (27)

Extension	Author (truncated)	Version
dart-code	Dar	3.68.1
flutter	Dar	3.68.0
gc-excelviewer	Gra	4.2.57
todo-tree	Gru	0.0.226
vue-snippets	hol	1.0.4
vscode-docker	ms-	1.26.0
isort	ms-	2023.10.1
python	ms-	2023.12.0
vscode-pylance	ms-	2023.7.30
jupyter	ms-	2023.6.1101941928
jupyter-keymap	ms-	1.1.2
jupyter-renderers	ms-	1.0.17
vscode-jupyter-cell-tags	ms-	0.1.8
vscode-jupyter-slideshow	ms-	0.1.5
remote-containers	ms-	0.299.0
remote-wsl	ms-	0.80.2
vsliveshare	ms-	1.0.5877
r	REd	2.8.1
stardog-rdf-grammars	sta	0.2.1
vscode-langserver-shacl	sta	0.2.0
vscode-langserver-sms	sta	0.2.0
vscode-langserver-sparql	sta	0.2.1
vscode-langserver-trig	sta	0.2.0
vscode-langserver-turtle	sta	0.2.1
vscode-stardog-languages	sta	0.1.0
rainbow-bracket	tal	1.0.2
volar	Vue	1.8.5

(1 theme extensions excluded)

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[meganrogge]

can you share your settings.json?

[Ceelbc]

settings.json.txt
Here you have my settings.json file.
Because GitHub doesn't support json files; I changed the file extension to txt.

[KnisterPeter]

I do see the same in WSL. When running code . from folder the command is kept running since the last release.
Previously it did terminate and frees the terminal for other interaction.

[meganrogge]

this works for me