• VSCode Version: 1.10.2
• OS Version: Win10 1607

Steps to Reproduce:

1. Set the following settings in VSCode
   "terminal.integrated.shell.windows": "C:\\Windows\\System32\\bash.exe",
   "terminal.external.windowsExec": "C:\\Windows\\System32\\bash.exe"
2. Try to start a new terminal

You get the following error message:
The terminal process command C:\Windows\System32\bash.exe failed to launch (exit code: 1)