Initialisation Error - Windows 10, new install of code and extension

The extension fails to load the console. It takes a while before it times out with an initialisation error. The logs just show…

05/04/2019 07:46:50 [NORMAL] - Visual Studio Code v1.33.0 64-bit
05/04/2019 07:46:50 [NORMAL] - PowerShell Extension v1.12.0
05/04/2019 07:46:50 [NORMAL] - Operating System: Windows 64-bit
05/04/2019 07:46:50 [NORMAL] - Language server starting --
05/04/2019 07:46:50 [NORMAL] -     exe: C:\Windows\System32\WindowsPowerShell\v1.0\powershell.exe
05/04/2019 07:46:50 [NORMAL] -     args: C:\Users\ME\.vscode\extensions\ms-vscode.powershell-1.12.0\modules\PowerShellEditorServices\Start-EditorServices.ps1 -HostName 'Visual Studio Code Host' -HostProfileId 'Microsoft.VSCode' -HostVersion '1.12.0' -AdditionalModules @('PowerShellEditorServices.VSCode') -BundledModulesPath 'C:\Users\ME\.vscode\extensions\ms-vscode.powershell-1.12.0\modules' -EnableConsoleRepl -LogLevel 'Normal' -LogPath 'C:\Users\ME\.vscode\extensions\ms-vscode.powershell-1.12.0\logs\1554446810-5aaeda74-9b5e-4ab8-bf2c-7c6a614b098a1554446804466\EditorServices.log' -SessionDetailsPath 'C:\Users\ME\.vscode\extensions\ms-vscode.powershell-1.12.0\sessions\PSES-VSCode-1292-974954' -FeatureFlags @()
05/04/2019 07:46:53 [NORMAL] - powershell.exe started, pid: 11356
05/04/2019 07:46:54 [NORMAL] - powershell.exe terminated or terminal UI was closed
05/04/2019 07:48:51 [NORMAL] - Language server startup failed.
05/04/2019 07:48:51 [ERROR] - The language service could not be started: 
05/04/2019 07:48:51 [ERROR] - Timed out waiting for session file to appear.

I can see people have had this issue in the past but they appear to be fixed on releases. This is a fresh install of Windows 10 along with Code and the extension. This is a company laptop though on Azure AD so something tells me they might have changed something.

PowerShell 6 will open fine. Execution policy is RemoteSigned

Tried the preview extension but also fails.

[TylerLeonhardt]

@SwarfegaGit do you use an anti virus? We’ve received a lot of reports in the last version that antivirus has been getting in the way of PowerShell Editor Services starting up in the background.

We have a fix that is pending a new release.

[TylerLeonhardt]

I will dupe this to https://github.com/PowerShell/vscode-powershell/issues/1831. We’ve already got a report that says the fix worked.