How do I get around the verified bug in Windows 1903 and launch the VSCode integrated terminal?

Question

I just did a fresh install of Windows 10 Pro version 1903 build 18362.116 and Visual Studio Code. Now the integrated terminal only launches externally.

Pressing

Answer 1

OK, worked through this one in VSCode repo issues.

For now, until it's fixed, turn off ConPTY integration in the User Settings.