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

• VS Code Version: 1.96?
• OS Version: Windows 11

Steps to Reproduce:

1. Ensure there are no VS Code running
2. Try to open VS Code "indirectly", e.g. via GitHub Desktop "Open in Visual Studio Code" or via command line code
3. Immediately see error; this error holds for a short while, and then the entire window disappears

Directly opening VS Code from e.g. the start menu works, but that defeats the entire purpose of being able to start VS Code from other places. If somehow there is already a VS Code window running, then the above error doesn't occur.

Example error window:

Normally, even code --crash-reporter-directory as mentioned in https://github.com/microsoft/vscode/wiki/Native-Crash-Issues#creating-a-crash-report can result in the same error, and this will NOT result in crash dumps (???), but I am lucky enough that it sometimes passes through, and now I have a crash dump for this error.

Crash dump:
20241212_vscode_dump.zip

For further context, my Windows 11 has OneDrive cloud backup enabled. I notice this cloud backup may somehow hold file locks that it should not (especially when it has completed the backup), which can sometimes block other apps eg Office Word from saving the Word file because the file is "in use" by OneDrive. Not sure if this is relevant in this problem.