Console host / terminal tab will not exit after using `code` to open the first Code window, until all Code windows are closed

[GeeLaw]

Does this issue occur when all extensions are disabled?: Yes

• VS Code Version: 1.103.2, 6f17636121051a53c88d3e605c491d22af2ba755, x64
• OS Version: Windows 11 version 24H2 build 26100.3775 x64

Steps to Reproduce:

1. Close all existing Code windows and all existing PowerShell instances.
2. Start PowerShell, run code; exit.
3. Observe that the PowerShell console or the PowerShell terminal tab hangs.
4. Open Task Manager and look for PowerShell process. Observe that PowerShell has exited.
5. Close the Code window normally (not using Task Manager). Observe that the PowerShell console or the PowerShell terminal tab exits once the Code window is closed.

Expected behavior: Step 3, the console or the terminal tab should exit.

Steps to Reproduce (continued):

1. Close all existing Code windows and all existing PowerShell instances.
2. Start PowerShell, run code, then close the console or the terminal tab using the X button.
3. Start PowerShell again, run code; exit.
4. Observe that the second console or the second terminal tab exits normally.

There are other things to try, such as using code path-to-dir or code path-to-file. A simple description consistent with what I observe in all those trials:

• If the code command opens a new window (file or directory or just running code), then it will block the console host or the terminal from shutting down, until the newly opened window is closed.
• If the code command did not open a new window, then it will not block the console host or the terminal from shutting down.

Psychic debugging:

• The code command starts Code.exe (for cli.js). Let's call the started process Code[1]. It is monitored by the terminal tab.
• If Code[1] determines a new window is not needed, it communicates the action to an existing window, and Code[1] terminates (unless --wait is specified). This means if the code command did not open a new window, then it will not block tab close.
• If Code[1] determines a new window is needed, it will launch some other Code.exe instances. For reason unknown to me, one of them (I suspect Code[1] does, also it seems to be the one hosting GUI) causes the terminal tab to wait upon closing.

Normally, a GUI-subsystem program should be detached from the console. For example, running Notepad.exe then running exit, then tab closes normally. For unknown reason, Code.exe (and possibly, all Electron-based programs) did not break away from the console?

[dmitrivMS]

@GeeLaw I am unable to repro, need your help. Can you check PATH in the PowerShell window you use to run "code; exit" - does it include VS Code folder or VS Code\bin folder or both and in which order?

[GeeLaw]

The PATH includes bin of Code but not the root installation directory. Below is $env:PATH.Split(';'), with the username suppressed.

Below is Windows PowerShell 5.1.

C:\Windows\system32
C:\Windows
C:\Windows\System32\Wbem
C:\Windows\System32\WindowsPowerShell\v1.0\
C:\Windows\System32\OpenSSH\
C:\Windows\system32
C:\texlive\2025\bin\windows
C:\Program Files\nodejs\
C:\Program Files\Git\cmd
C:\Program Files\PowerShell\7\
C:\Program Files\PowerToys\DSCModules\
C:\Program Files\dotnet\
C:\Program Files (x86)\Windows Kits\10\Windows Performance Toolkit\
C:\Users\<username>\AppData\Local\Microsoft\WindowsApps
C:\Users\<username>\AppData\Local\Programs\Microsoft VS Code\bin
C:\Users\<username>\.dotnet\tools

Below is PowerShell 7 (same system).

C:\Program Files\PowerShell\7
C:\Windows\system32
C:\Windows
C:\Windows\System32\Wbem
C:\Windows\System32\WindowsPowerShell\v1.0\
C:\Windows\System32\OpenSSH\
C:\Windows\system32
C:\texlive\2025\bin\windows
C:\Program Files\nodejs\
C:\Program Files\Git\cmd
C:\Program Files\PowerShell\7\
C:\Program Files\PowerToys\DSCModules\
C:\Program Files\dotnet\
C:\Program Files (x86)\Windows Kits\10\Windows Performance Toolkit\
C:\Users\<username>\AppData\Local\Microsoft\WindowsApps
C:\Users\<username>\AppData\Local\Programs\Microsoft VS Code\bin
C:\Users\<username>\.dotnet\tools

The user/system PATH are as follows.

[System.Environment]::GetEnvironmentVariable('PATH', 'User').Split(';')

C:\Users\<username>\AppData\Local\Microsoft\WindowsApps
C:\Users\<username>\AppData\Local\Programs\Microsoft VS Code\bin
C:\Users\<username>\.dotnet\tools

[System.Environment]::GetEnvironmentVariable('PATH', 'Machine').Split(';')

C:\Windows\system32
C:\Windows
C:\Windows\System32\Wbem
C:\Windows\System32\WindowsPowerShell\v1.0\
C:\Windows\System32\OpenSSH\
C:\Windows\system32
C:\texlive\2025\bin\windows
C:\Program Files\nodejs\
C:\Program Files\Git\cmd
C:\Program Files\PowerShell\7\
C:\Program Files\PowerToys\DSCModules\
C:\Program Files\dotnet\
C:\Program Files (x86)\Windows Kits\10\Windows Performance Toolkit\

[GeeLaw]

Today I just tried again (there has been updates to Code). The symptom appears to have been reduced:

• If the code command opens a new window (file or directory or just running code), then it will block the console host or the terminal from shutting down, until the newly opened window is closed.
• If the code command did not open a new window, then it will not block the console host or the terminal from shutting down.
• If the code command opens the first window, then it will block the console host or the terminal tab from shutting down, until all Code windows are closed.
• If the code command did not open a new window or opened a non-first window, then it will not block.

The above was observed in (as of writing, the latest stable version)

Version: 1.120.0 (user setup)
Commit: 0958016b2af9f09bb4257e0df4a95e2f90590f9f
Date: 2026-05-12T20:17:22Z
Electron: 39.8.8
ElectronBuildId: 13870025
Chromium: 142.0.7444.265
Node.js: 22.22.1
V8: 14.2.231.22-electron.0
OS: Windows_NT x64 10.0.26200