VSCode fails to launch from git bash on windows

[imgdevlpr]

Type: Bug

This used to work for quite a long time until recently. Not sure when this breaking change was triggered. My usual workflow is to open code from a conda environment, whether its from cmd, powershell OR git-bash. I have tried all possible combinations and the main culprit is if I include anaconda in the PATH variable. Not sure how this impacts code launch.

1. Install git-scm for windows
2. Install anaconda3 and add anaconda to PATH variable
3. Install VSCode
4. Open git-bash and type in code. This fails with the error message:

$ code
node:internal/modules/cjs/loader:1013
throw err;
^

Error: Cannot find module 'C:\Users<user>\AppData\Local\anaconda3\Library\c\Program Files\Microsoft VS Code\resources\app\out\cli.js'
at Module._resolveFilename (node:internal/modules/cjs/loader:1010:15)
at Module._load (node:internal/modules/cjs/loader:858:27)
at f._load (node:electron/js2c/asar_bundle:2:13330)
at Function.executeUserEntryPoint [as runMain] (node:internal/modules/run_main:87:12)
at node:internal/main/run_main_module:17:47 {
code: 'MODULE_NOT_FOUND',
requireStack: []
}

VS Code version: Code 1.81.1 (6c3e3db, 2023-08-09T22:22:42.175Z)
OS version: Windows_NT x64 10.0.22621
Modes:

[lszomoru]

Closing as duplicate of #187392 which contains a workaround to resolve this issue.