VSCode PowerShell error: The terminal process failed to launch: A native exception occurred during launch (Cannot create process, error code: 740)

Question

Suddenly I started to get the next error message when trying to open the PowerShell Terminal window in VSCode:

The terminal process failed to launch: A native exception occurred during launch (Cannot create process, error code: 740).

What is the reason for it?

(There are similar questions on SO, but with other error codes, which are not helpful)

Answer 1

Here is a similar question on GitHub. In short, the problem is in pwsh.exe → Properties → 'Compatibility' tab → 'Run this program as an administrator' setting. In my case pwsh.exe is C:\Program Files\PowerShell\7\pwsh.exe

You can fix it in two ways:

1. Run Visual Studio Code as Administrator (which is not always a good option)
2. Uncheck this setting for pwsh.exe