Current directory is included in PowerShell "launch" option; breaking launch configurations that run a command

Prerequisites

• I have written a descriptive issue title.
• I have searched all issues to ensure it has not already been reported.
• I have read the troubleshooting guide.
• I have verified that I am using the latest version of Visual Studio Code and the PowerShell extension.

Summary

I like to run PowerShell scripts into external windows. I have been using the same launch configs for years now without problem, but suddenly none of them now work. Here is an example launch.json:

{
    "version": "0.2.0",
    "configurations": [
        {
            "type": "PowerShell",
            "request": "launch",
            "name": "PS5",
            "script": "Start-Process",
            "args": [
                "-FilePath ($Env:SystemRoot + '\\system32\\WindowsPowerShell\\v1.0\\powershell.exe')",
                "-Argumentlist '-NoExit -NoProfile -ExecutionPolicy Bypass -File \"${file}\"'"
            ]
        }
    ]
}

What should happen when running launching a .PS1 file with the debug option, is this:

PS C:\Test> Start-Process -FilePath ($Env:SystemRoot + '\system32\WindowsPowerShell\v1.0\powershell.exe') -Argumentlist '-NoExit -NoProfile -ExecutionPolicy Bypass -File "c:\Users\TestUser\desktop\TestScript.PS1"'

However it actually runs:

PS C:\Test> C:\Test\Start-Process -FilePath ($Env:SystemRoot + '\system32\WindowsPowerShell\v1.0\powershell.exe') -Argumentlist '-NoExit -NoProfile -ExecutionPolicy Bypass -File "c:\Users\TestUser\desktop\TestScript.PS1"'

Which of course leads to the error message:

C:\Test\Start-Process: The term 'C:\Test\Start-Process' is not recognized as a name of a cmdlet, function, script file, or executable program.

PowerShell Version

Name                           Value
----                           -----
PSVersion                      7.1.4
PSEdition                      Core
GitCommitId                    7.1.4
OS                             Microsoft Windows 10.0.19042
Platform                       Win32NT
PSCompatibleVersions           {1.0, 2.0, 3.0, 4.0…}
PSRemotingProtocolVersion      2.3
SerializationVersion           1.1.0.1
WSManStackVersion              3.0

Visual Studio Code Version

1.59.1
3866c3553be8b268c8a7f8c0482c0c0177aa8bfa
x64

Extension Version

ms-vscode.powershell-preview@2021.8.2

Steps to Reproduce

Use the Launch config from above, and select it as the debug option. Then attempt to run any SAVED script.

Visuals

No response

Logs

No response

[andschwa]

Ah, it was https://github.com/PowerShell/PowerShellEditorServices/pull/1540/commits/da439373a5dc0d83e8a53ad9417e5a34973afdba 🙃

[andschwa]

This fix is available in the preview that went out yesterday!