VSCode unable to start on AVD (1.107 version only)

[jagusztinl]

Does this issue occur when all extensions are disabled?: Yes/No

• VS Code Version: 1.107.0
• OS Version: Windows 11 on AVD

Steps to Reproduce:

1. Unzip the VSCode.zip or install with User installer 1.107.0
2. Ttry to start vscode
   3., On AVD it will not start, wihout any error, simply nothing happens
   4., In case of 1.97.0 version, it works perfectly

Please help how to collect more information about the problem

[sa-CtrlAltDel]

Same issue here, Windows Server 2025 Datacenter Azure Edition with FSLogix, VS Code (machine wide) 1.107.0. Code doesn't start at all. No event log entries. No visible windows. No stuck process in the task manager. Just nothing.
edit: downgraded to the prior version 1.106.3 which works instantly again.