VSCode Powershell integrated terminal hangs when starting

I am using VSCode version 1.12.2 in Windows 10 x64 build 16193. I am trying to debug Powershell in VSCode, but I cannot get the PowerShell Integrated Terminal working. Every time I started the terminal, here's what I see:

VSCode Powershell terminal

And then it hangs in that stage. I can still debug, start, step in, step out..., but I cannot view my variable or run any expression.

My VSCode is using powershell x64 here:

"terminal.integrated.shell.windows": "C:\\WINDOWS\\Sysnative\\WindowsPowerShell\\v1.0\\powershell.exe"

Why is my VS Code terminal not working?

If your terminal is set to run as administrator only, and you are not launching VS Code as administrator, the terminal will not be able to open. You can either change the default terminal or edit the properties of the terminal exe to not run as administrator.

How do you stop an infinite loop in VS Code?

Ctrl+C should break out of an infinite loop while a cell is running.

So this is a known issue with this version of windows 10. Workaround here: https://github.com/PowerShell/vscode-powershell/issues/742