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[Conpty] Vscode, integrated terminal failed to launch (exit code: {2}) #88008

Description

Vscode, integrated terminal not launching powershell / gitbash / cmd.

This error occurs in less privileged (normal AD/LDAP user) account but it works only if I launch VSCode as an administrator.

Same error occurs even after disabling the Antivirus program.

Error : The terminal process command 'C:\WINDOWS\System32\WindowsPowerShell\v1.0\powershell.exe' failed to launch (exit code: {2})
The terminal process command 'C:\Program Files\Git\bin\bash.exe' failed to launch (exit code: {2})
'C:\WINDOWS\System32\cmd.exe' failed to launch (exit code: {2})

Platform:
Windows 10E
Version: 1903
OS build 18362.535

image

Also, the path is weird. It should be Windows not WINDOWS. Correcting that in settings.json too didn't work. Tried with 64 bit, 32 bit, User and System wide installations too. But no dice.

BTW those terminals launch normally if I open them outside of VSCode. Also the project path exists, no weird symbol in pathname, even tried launching the vscode without opening any project. But the issue persists since December 31, 2019.

Tried escaping space in file path as recommended in following wiki. But still no luck.
https://github.com/cmderdev/cmder/wiki/Seamless-VS-Code-Integration

{
// "terminal.integrated.shell.windows": "C:\Program^ Files\Git\bin\bash.exe",
"terminal.integrated.shell.windows": "C:\PROGRA~1\Git\bin\bash.exe"
}

image

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*duplicateIssue identified as a duplicate of another issue(s)bugIssue identified by VS Code Team member as probable bugterminalGeneral terminal issues that don't fall under another labelterminal-conptyIntegrated terminal issues related to the ConPTY backendupstreamIssue identified as 'upstream' component related (exists outside of VS Code)

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