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Malwarebytes prevents Visual Studio code integrated terminal from launching

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Since very recently Visual Studio Code started throwing this error whenever I try to launch the integrated terminal:

The terminal process command 'C:\Windows\system32\cmd.exe' failed to launch (exit code: {2})

For those unfamiliar, it basically opens command prompt inside of VSCode under the current project directory. I have been using this feature without a problem for years.

I am using Windows 7 64 bit, and if I go to the system tray, right click on Malwarebytes and turn Ransomware protection off, it starts working again immediately, don't even need to restart VSCode.

I tried to check my detection history to see if there was some log available -> Open Malwarebytes -> Detection History -> History but nothing there related to the issue.

Also I just update to the latest version of Malwarebytes:

- Malwarebytes version:

- Update package version: 1.0.18540

- Component package version: 1.0.810

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@AdvancedSetup thanks for your reply.

I just want to mention that before you replied to me I used this Support Tool to perform a clean reinstallation. Unfortunately after doing that and restarting the computer, I tried replicating the issue with VSCode and it still exists. I am getting the same error even after clean install.


That aside, I have run the tool and generated the logs zip archive. I am seeing that it contains some private information, so please let me know where I can send it to the support team privately (not on a public forum). There is an "Upload Logs" option available in the tool but it requires a ticket number and email.


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Thank you for the report. We're aware of this issue and hope to have a fix in an upcoming release.

In the meantime, we've found that adding the VS Code installation directory as a folder exclusion in Malwarebytes mitigates the issue.
See here for details on how to add exclusions in the program.

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Thanks for this!!! The excluding of the entire the VS Code installation directory worked for me. 

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