Receiving error message 'Extension host terminated unexpectedly.' in Visual Studio Code

Question

I had the same error after updating vsc to v. 1.31.0.

Disabling Live Server Extension worked for me.

Here's the error i'm getting having the extension enabled.

I started getting this error when vscode automatically updated to March 2020 (version 1.44). I have tried various suggestions given in the forum and over the internet but none of them worked.

What worked for me: I downloaded January 2020 (version 1.42) build from https://code.visualstudio.com/updates/v1_42 and ran over the previous installation without uninstalling and surprisingly, the error disappeared and all extensions are loading and working properly.

I tried following things and non of them worked:

1. I disabled all the installed extension from GUI.

2. uninstalled all the extension and installed again.

3. removed the left-over extensions from Windows %USERPROFILE%.vscode\extensions.

4. tried launching from the command prompt with --disable-extensions option.

Linking my github issue on Microsoft/vscode as reference.
It ended up being one of the base extensions that runs on startup that was the root of the problem.

In my case the git in extensions folder was causing it.
"git.enabled": false was not doing the trick so I had to remove the git folder altogether for the error to disappear.

In my case, I used typescript-hero extension. Disabling this extension fixed my problem. It's temporal fix but maybe will help somebody.