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

• VS Code Version: 1.90.0 - 1.96.2 (happens on all)
• OS Version: Windows 11 24H2 (x64)

Steps to Reproduce:

1. Install using "System Installer".
2. Leave VSCode running. Wait for a new version to be released.
3. When the auto-update runs, it consistently fails after removing part of the existing installation files. This leaves the machine with corrupted unworking copy of VSCode which requires manual reinstall. See the attached log.

WinGet-Microsoft.VisualStudioCode.1.96.1-2024-12-19-11-55-18.358.log