vscode-csharp: "'Microsoft.NET.Sdk' could not be found" when running VS Code from Git Bash

Environment data

dotnet --info output:

.NET Command Line Tools (2.0.0)

Product Information:
 Version:            2.0.0
 Commit SHA-1 hash:  cdcd1928c9

Runtime Environment:
 OS Name:     Windows
 OS Version:  6.1.7601
 OS Platform: Windows
 RID:         win7-x64
 Base Path:   C:\Users\nosikil\scoop\apps\dotnet-sdk\current\sdk\2.0.0\

Microsoft .NET Core Shared Framework Host

  Version  : 2.0.0
  Build    : e8b8861ac7faf042c87a5c2f9f2d04c98b69f28d

VS Code version: 1.15.0 C# Extension version: 1.12.1

Steps to reproduce

In Git Bash:

dotnet new console
code.cmd .

Note that Git, the .NET SDK and VS Code are installed with Scoop on my machine.

Expected behavior

This is what I get when running VS Code from the console or PowerShell:

Starting OmniSharp server at 14.9.2017, 15:09:52
    Target: d:\temp

OmniSharp server started
    Path: C:\Users\nosikil\.vscode\extensions\ms-vscode.csharp-1.12.1\.omnisharp\OmniSharp.exe
    PID: 5580

OmniSharp: -s d:\temp --hostPID 4480 --stdio DotNet:enablePackageRestore=false --encoding utf-8 --loglevel information formattingOptions:useTabs=false formattingOptions:tabSize=4 formattingOptions:indentationSize=4
[info]: OmniSharp.Startup
        Omnisharp server running using Stdio at location 'd:\temp' on host 4480.
[info]: OmniSharp.DotNet.DotNetProjectSystem
        Initializing in d:\temp
[info]: OmniSharp.DotNet.DotNetProjectSystem
        Auto package restore: False
[info]: OmniSharp.DotNet.DotNetProjectSystem
        Update workspace context
[info]: OmniSharp.DotNet.DotNetProjectSystem
        Resolving projects references
[info]: OmniSharp.MSBuild.MSBuildProjectSystem
        Omnisharp will use local MSBuild.
    MSBUILD_EXE_PATH: C:\Users\nosikil\.vscode\extensions\ms-vscode.csharp-1.12.1\.omnisharp\msbuild\MSBuild.exe
    MSBuildExtensionsPath: C:\Users\nosikil\.vscode\extensions\ms-vscode.csharp-1.12.1\.omnisharp\msbuild

[info]: OmniSharp.MSBuild.MSBuildProjectSystem
        No solution files found in 'd:\temp'
[info]: OmniSharp.MSBuild.MSBuildProjectSystem
        Loading project: d:\temp\temp.csproj

[info]: OmniSharp.MSBuild.MSBuildProjectSystem
        Update project: temp
[info]: OmniSharp.Script.ScriptProjectSystem
        Detecting CSX files in 'd:\temp'.
[info]: OmniSharp.Script.ScriptProjectSystem
        Could not find any CSX files
[info]: OmniSharp.Services.WorkspaceHelper
        Invoking Workspace Options Provider: OmniSharp.Roslyn.CSharp.Services.CSharpWorkspaceOptionsProvider
[info]: OmniSharp.Startup
        Configuration finished.

Actual behavior

This is what I get with Git Bash:

Starting OmniSharp server at 14.9.2017, 15:06:24
    Target: d:\temp

OmniSharp server started
    Path: C:\Users\nosikil\.vscode\extensions\ms-vscode.csharp-1.12.1\.omnisharp\OmniSharp.exe
    PID: 12952

OmniSharp: -s d:\temp --hostPID 7308 --stdio DotNet:enablePackageRestore=false --encoding utf-8 --loglevel information formattingOptions:useTabs=false formattingOptions:tabSize=4 formattingOptions:indentationSize=4
[info]: OmniSharp.Startup
        Omnisharp server running using Stdio at location 'd:\temp' on host 7308.
[info]: OmniSharp.DotNet.DotNetProjectSystem
        Initializing in d:\temp
[info]: OmniSharp.DotNet.DotNetProjectSystem
        Auto package restore: False
[info]: OmniSharp.DotNet.DotNetProjectSystem
        Update workspace context
[info]: OmniSharp.DotNet.DotNetProjectSystem
        Resolving projects references
[info]: OmniSharp.MSBuild.MSBuildProjectSystem
        Omnisharp will use local MSBuild.
    MSBUILD_EXE_PATH: C:\Users\nosikil\.vscode\extensions\ms-vscode.csharp-1.12.1\.omnisharp\msbuild\MSBuild.exe
    MSBuildExtensionsPath: C:\Users\nosikil\.vscode\extensions\ms-vscode.csharp-1.12.1\.omnisharp\msbuild

[info]: OmniSharp.MSBuild.MSBuildProjectSystem
        No solution files found in 'd:\temp'
[info]: OmniSharp.MSBuild.MSBuildProjectSystem
        Loading project: d:\temp\temp.csproj
[warn]: OmniSharp.MSBuild.MSBuildProjectSystem
        Failed to load project file 'd:\temp\temp.csproj'.
d:\temp\temp.csproj(1,1)
Microsoft.Build.Exceptions.InvalidProjectFileException: The SDK 'Microsoft.NET.Sdk' specified could not be found.  d:\temp\temp.csproj
   at Microsoft.Build.Shared.ProjectErrorUtilities.ThrowInvalidProject(String errorSubCategoryResourceName, IElementLocation elementLocation, String resourceName, Object[] args)
   at Microsoft.Build.Evaluation.Evaluator`4.ExpandAndLoadImportsFromUnescapedImportExpressionConditioned(String directoryOfImportingFile, ProjectImportElement importElement, List`1& projects, Boolean throwOnFileNotExistsError)
   at Microsoft.Build.Evaluation.Evaluator`4.ExpandAndLoadImports(String directoryOfImportingFile, ProjectImportElement importElement)
   at Microsoft.Build.Evaluation.Evaluator`4.EvaluateImportElement(String directoryOfImportingFile, ProjectImportElement importElement)
   at Microsoft.Build.Evaluation.Evaluator`4.PerformDepthFirstPass(ProjectRootElement currentProjectOrImport)
   at Microsoft.Build.Evaluation.Evaluator`4.Evaluate(ILoggingService loggingService, BuildEventContext buildEventContext)
   at Microsoft.Build.Evaluation.Project.Reevaluate(ILoggingService loggingServiceForEvaluation, ProjectLoadSettings loadSettings)
   at Microsoft.Build.Evaluation.Project.ReevaluateIfNecessary(ILoggingService loggingServiceForEvaluation, ProjectLoadSettings loadSettings)
   at Microsoft.Build.Evaluation.Project.Initialize(IDictionary`2 globalProperties, String toolsVersion, String subToolsetVersion, ProjectLoadSettings loadSettings)
   at Microsoft.Build.Evaluation.Project..ctor(String projectFile, IDictionary`2 globalProperties, String toolsVersion, String subToolsetVersion, ProjectCollection projectCollection, ProjectLoadSettings loadSettings)
   at Microsoft.Build.Evaluation.ProjectCollection.LoadProject(String fileName, IDictionary`2 globalProperties, String toolsVersion)
   at OmniSharp.MSBuild.ProjectFile.ProjectFileInfo.LoadProject(String filePath, String solutionDirectory, String sdksPath, ILogger logger, MSBuildOptions options, ICollection`1 diagnostics, ImmutableArray`1& targetFrameworks)
   at OmniSharp.MSBuild.ProjectFile.ProjectFileInfo.Create(String filePath, String solutionDirectory, String sdksPath, ILogger logger, MSBuildOptions options, ICollection`1 diagnostics)
   at OmniSharp.MSBuild.MSBuildProjectSystem.LoadProject(String projectFilePath)

[info]: OmniSharp.Script.ScriptProjectSystem
        Detecting CSX files in 'd:\temp'.
[info]: OmniSharp.Script.ScriptProjectSystem
        Could not find any CSX files
[info]: OmniSharp.Services.WorkspaceHelper
        Invoking Workspace Options Provider: OmniSharp.Roslyn.CSharp.Services.CSharpWorkspaceOptionsProvider
[info]: OmniSharp.Startup
        Configuration finished.