Does this issue occur when all extensions are disabled?: Yes
Starting from 1.110.0 VS Code prepend PATH environment variable with its install directory, when started from start menu icon or from Code.exe. There are no issue with PATH environment variable, when VS Code started from bin\code.cmd. This is problematic as plain code will now resolve into Code.exe instead of code.cmd, when used in internal terminal, so things like code --install-extension, code --diff or code --merge will no longer work, as Code.exe did not process this command line parameters.
I tested it on clean Windows install (VM with snapshot just after install) with restore to clean state before each version tested.
I tested it on 1.113.0-insider it was not affected, but now 1.113.0 released and bug still here, so I presume it just does not affect Insider builds.
- VS Code Version: 1.110.0, 1.111.0, 1.112.0, 1.113.0
- OS Version: 10.0.26200.8037
Steps to Reproduce:
- Clean install of VS Code.
- Start VS Code from start menu icon.
Screenshot from 1.109.0:

Screenshot from 1.110.0

Does this issue occur when all extensions are disabled?: Yes
Starting from 1.110.0 VS Code prepend PATH environment variable with its install directory, when started from start menu icon or from
Code.exe. There are no issue with PATH environment variable, when VS Code started frombin\code.cmd. This is problematic as plaincodewill now resolve intoCode.exeinstead ofcode.cmd, when used in internal terminal, so things likecode --install-extension,code --difforcode --mergewill no longer work, asCode.exedid not process this command line parameters.I tested it on clean Windows install (VM with snapshot just after install) with restore to clean state before each version tested.
I tested it on 1.113.0-insider it was not affected, but now 1.113.0 released and bug still here, so I presume it just does not affect Insider builds.
Steps to Reproduce:
Screenshot from 1.109.0:


Screenshot from 1.110.0