vscode-powershell: `Write-Output` broken

Prerequisites

• I have written a descriptive issue title.
• I have searched all issues to ensure it has not already been reported.
• I have read the troubleshooting guide.
• I am sure this issue is with the extension itself and does not reproduce in a standalone PowerShell instance.
• I have verified that I am using the latest version of Visual Studio Code and the PowerShell extension.
• If this is a security issue, I have read the security issue reporting guidance.

Summary

Edit: Changed title to remove “for elevated accounts” as it is now not working at all regardless of account used.

The PowerShell Extension is not starting correctly. I worked with folks over at discord who guided me through finding the issue. Attaching diagnostic log files for review as well as screen shots of the symptoms. Essentially I cannot get output from scripts I’m writing in VSCode in the PowerShell Extension terminal window

WARNING: In development mode but PowerShellEditorServices dev module path cannot be found (or has not been built yet): c:\Users\u598743a.vscode\extensions\PowerShellEditorServices\module

PowerShell Version

PS C:\Users\u598743a\.vscode> $PSVersionTable

Name                           Value
----                           -----
PSVersion                      5.1.19041.1682
PSEdition                      Desktop
PSCompatibleVersions           {1.0, 2.0, 3.0, 4.0...}
BuildVersion                   10.0.19041.1682
CLRVersion                     4.0.30319.42000
WSManStackVersion              3.0
PSRemotingProtocolVersion      2.3
SerializationVersion           1.1.0.1

Visual Studio Code Version

PS C:\Users\u598743a\.vscode> code --version
1.67.2
c3511e6c69bb39013c4a4b7b9566ec1ca73fc4d5
x64

Extension Version

PS C:\Users\u598743a\.vscode> code --list-extensions --show-versions | select-string powershell

ms-vscode.powershell@2022.5.1

Steps to Reproduce

Just run a script, run a code snippet and nothing gets returned. Interestingly though if I change my code to write-host instead of write-output then I get results to the Extension’s terminal.

Visuals

Logs

vscode-powershell.log EditorServices.log StartEditorServices.log