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workspace files reverted to old versions after the newest update #251471

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@Raiccio

Description

@Raiccio

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

  • VS Code Version: May 2025 (version 1.101)
  • OS Version: Win11 Pro

Steps to Reproduce:

  1. Install the new update from inside the VSCode
  2. Launch your workspace

Every single file in my workspace got reverted to a 6th of June version (8 days of progress lost) after updating VSCode today. First time this is happening.
Also the VScode started constantly hanging (not responsing) and asking in a prompt window to be reopened/closed/waited for, also a behaviour I see for the first time.
Also some notebooks are not loading at all (empty screen)...

What is weird is that all the files got reverted to a point in time I last made an external backup of everything.

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