From: @Garfield550

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

• VS Code Version: 1.97.0
• OS Version: macOS Sequoia 15.3 (Darwin arm64 24.3.0)

Steps to Reproduce:

1. Install Homebrew /bin/bash -c "$(curl -fsSL https://raw.githubusercontent.com/Homebrew/install/HEAD/install.sh)"
2. Install PowerShell from Homebrew brew install --cask powershell
3. Set up pwsh as the login shell https://learn.microsoft.com/en-us/powershell/module/microsoft.powershell.core/about/about_pwsh?view=powershell-7.5#-login---l chsh -s /opt/homebrew/bin/pwsh
4. Let ~/.profile set an environment variable. echo "export IS_PROFILE_EXECUTED=1" >> $HOME/.profile
5. Start Visual Studio Code and create a terminal.
6. Run $env:IS_PROFILE_EXECUTED.
7. On 1.96.4, the result is 1. On 1.97.0, the result is no output.