Notifications always appear when I close a powershell terminal #5660

Prerequisites

• I have written a descriptive issue title.
• I have searched all open and closed issues to ensure it has not already been reported.
• I have read the troubleshooting guide.
• I am sure this issue is with the extension itself and does not reproduce in a standalone PowerShell instance.
• I have verified that I am using the latest version of Visual Studio Code and the PowerShell extension.
• If this is a security issue, I have read the security issue reporting guidance.

Summary

This annoying notifications keep reappearing when I close a powershell terminal from vscode even though I already turn off the notification.

PowerShell Version

Name                           Value                                                                                   
----                           -----                                                                                   
PSVersion                      5.1.26100.9711                                                                          
PSEdition                      Desktop                                                                                 
PSCompatibleVersions           {1.0, 2.0, 3.0, 4.0...}                                                                 
BuildVersion                   10.0.26100.9711                                                                         
CLRVersion                     4.0.30319.42000                                                                         
WSManStackVersion              3.0                                                                                     
PSRemotingProtocolVersion      2.3                                                                                     
SerializationVersion           1.1.0.1                                                                                 

Name             : ConsoleHost
Version          : 5.1.26100.9711
InstanceId       : 282c8351-1aad-44a1-8f83-3591e7accf19
UI               : System.Management.Automation.Internal.Host.InternalHostUserInterface
CurrentCulture   : en-US
CurrentUICulture : en-US
PrivateData      : Microsoft.PowerShell.ConsoleHost+ConsoleColorProxy
DebuggerEnabled  : True
IsRunspacePushed : False
Runspace         : System.Management.Automation.Runspaces.LocalRunspace

Visual Studio Code Version

1.142.0
6d62b1d5dace93a33b3a6d3eca1317bd5e15bcb1
x64

Extension Version

ms-vscode.powershell@2025.4.0

Steps to Reproduce

1. Open a new vscode window
2. Open a .ps1 script, this will open automatically a powershell terminal (this is also annoying because it opens terminal window if it was hidden)
3. Click "kill terminal"
4. The 2 notifications in screenshot will appear

Visuals

Logs

2026-10-21 14:06:17.044 [info] Visual Studio Code: v1.142.0 64-bit on Windows 64-bit
2026-10-21 14:06:17.044 [info] PowerShell Extension: v2025.4.0
2026-10-21 14:06:17.151 [info] Starting 'Windows PowerShell (x64)' at: C:\WINDOWS\System32\WindowsPowerShell\v1.0\powershell.exe
2026-10-21 14:06:17.488 [info] PowerShell process started with PID: 17188
2026-10-21 14:06:23.669 [info] Started PowerShell v5.1.26100.
2026-10-21 15:29:07.520 [info] Visual Studio Code: v1.142.0 64-bit on Windows 64-bit
2026-10-21 15:29:07.520 [info] PowerShell Extension: v2025.4.0
2026-10-21 15:29:17.402 [info] Starting 'Windows PowerShell (x64)' at: C:\WINDOWS\System32\WindowsPowerShell\v1.0\powershell.exe
2026-10-21 15:29:18.098 [info] PowerShell process started with PID: 38196
2026-10-21 15:29:24.948 [info] Started PowerShell v5.1.26100.
2026-10-21 15:36:09.722 [warning] PowerShell process terminated or Extension Terminal was closed, PID: 38196
2026-10-21 15:36:09.722 [error] The PowerShell Extension Terminal has stopped, would you like to restart it? IntelliSense and other features will not work without it!
2026-10-21 15:36:10.012 [info] Language service connection closed.
2026-10-21 15:36:10.015 [info] [PSES] [Error - 3:36:10 PM] Connection to PowerShell Editor Services (the Extension Terminal) was closed. See below prompt to restart!
2026-10-21 15:40:42.106 [info] Visual Studio Code: v1.142.0 64-bit on Windows 64-bit
2026-10-21 15:40:42.106 [info] PowerShell Extension: v2025.4.0
2026-10-21 15:40:42.132 [info] Starting 'Windows PowerShell (x64)' at: C:\WINDOWS\System32\WindowsPowerShell\v1.0\powershell.exe
2026-10-21 15:40:42.665 [info] PowerShell process started with PID: 14248
2026-10-21 15:40:48.634 [info] Started PowerShell v5.1.26100.
2026-10-21 15:41:55.539 [warning] PowerShell process terminated or Extension Terminal was closed, PID: 14248
2026-10-21 15:41:55.539 [error] The PowerShell Extension Terminal has stopped, would you like to restart it? IntelliSense and other features will not work without it!
2026-10-21 15:41:55.818 [info] Language service connection closed.
2026-10-21 15:41:55.820 [info] [PSES] [Error - 3:41:55 PM] Connection to PowerShell Editor Services (the Extension Terminal) was closed. See below prompt to restart!