“The terminal process terminated with exit code: 1” in Visual Studio Code when open PowerShell file

When you open a PowerShell file in Visual Studio Code, you may see following error:

The terminal process terminated with exit code: 1

The issue usually occurred on new provisioned system or enterprise environment with restricted security policy. The reason and solution are same like my other post: “Timed out waiting for the PowerShell extension to start” in Visual Studio Code.