VSCode terminal process command failed to launch

Question

I am trying out the Hello World sample extension. But when I run the extension from the 'Run Extension' task. It gives the following error:

The terminal process command '/bin/zsh -c 'npm run watch'' failed to launch (exit code: 127)

But I am able to run the above command from terminal without any errors.

Answer 1

Just found this https://github.com/microsoft/vscode/issues/76542 For me in OSX apparently is an issue when opening code from the terminal with code . and can be fixed by checking in settings Terminal>Integrated: Inherit Evn to inherit the environment from VSCode