Steps to Reproduce:
code . in the address bar.code . (exact behaviour depending on installed browser).The installer adds C:\Program Files\Microsoft VS Code\bin to the Path variable. Taking of \bin and changing the Path variable entry to C:\Program Files\Microsoft VS Code fixes the issue.
See also discussion here
Does this issue occur when all extensions are disabled?: Have not checked.
Is this caused by Santa hat missing..?
We add bin to the PATH since that's where Code's CLI script is. If you take \bin out you lose support to run code --version and other CLI flags from the command line.
We simply choose not to support typing code . in the address bar of the Windows Explorer.
Most helpful comment
Is this caused by Santa hat missing..?