Windows 11 Multi Session - Fails To Launch

[BlueOdyssey]

Does this issue occur when all extensions are disabled?: Yes

• VS Code Version: 1.102.1
• OS Version: 10.0.26100.4656

Steps to Reproduce:
This is specific to Windows 11 Enterprise Multi-Session, for Azure Virtual Desktop when FSLogix is used. I have not tested without FSLogix. VSC is installed as a system wide deployment.

1. When launching VSC as a user, no action is shown. The user selects the shortcut to launch and no UI is shown.
2. When attempting to launch via Command Prompt using the code.exe file, the following error is shown:
   Error: ENOENT: no such file or directory, mkdir 'c:\Users\USERNAME\.vscode\extensions' [Error]: Unable to write file 'c:\Users\USERNAME\AppData\Roaming\Code\User\globalStorage\storage.json' (EntryNotFound (FileSystemError): File to move/copy does not exist)
3. If you launch code.exe using the local administrator account, VSC launches correctly and the UX is shown.

Rolling back to a previous release such as 1.100.x resolves the issue on the same device. Other public reports are beginning to appear on Reddit too: https://www.reddit.com/r/vscode/comments/1lpavay/code_wont_open_on_new_install_win_11/

[rl-utility-man]

is this a duplicate of #251448?

[BlueOdyssey]

is this a duplicate of #251448?

Yep appears to be - strange that didn't appear when I was initially searching, could only find the Reddit posts.