I am experiencing two frustrating regressions with the terminal integration in the latest release:
1. Ignores IDE Default Shell The agent consistently uses PowerShell 5 instead of respecting the IDE’s configured default shell. My IDE is explicitly set up to use PowerShell 7, but the agent completely ignores this and defaults back to PS 5.
2. “Always Proceed” for Terminal Commands is broken In the extension settings, I have “Terminal Command Auto Execution” set to “Always Proceed” (see screenshot). However, this setting is completely ignored. The agent still pauses and requires me to manually click “Allow” or “Accept” for every single terminal command. This completely breaks the automated workflow and wastes a lot of time.
Environment Details:
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OS: Windows
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Expected Shell: PowerShell 7
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Actual Agent Shell: PowerShell 5
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Setting: “Terminal Command Auto Execution” → “Always Proceed”

