VScode default terminal defaults to powershell even after chaning

[DevUt]

Issue Type: Bug

When we run open any folder the default terminal is powershell, even extensions are executing on powershell. But if we open a terminal it would open the one we changed to (in my case cmd).
Also in C/C++
After compilation the program is being runned in powershell, even though my default terminal is something else.
This is happening since the last update

VS Code version: Code 1.60.0 (e7d7e9a, 2021-09-01T10:41:52.311Z)
OS version: Windows_NT x64 10.0.19042
Restricted Mode: No

System Info

Item	Value
CPUs	Intel(R) Core(TM) i5-8265U CPU @ 1.60GHz (8 x 1800)
GPU Status	2d_canvas: enabled gpu_compositing: enabled multiple_raster_threads: enabled_on oop_rasterization: enabled opengl: enabled_on rasterization: enabled skia_renderer: enabled_on video_decode: enabled vulkan: disabled_off webgl: enabled webgl2: enabled
Load (avg)	undefined
Memory (System)	7.89GB (1.45GB free)
Process Argv	--crash-reporter-id c414595e-a8a9-4a36-a92f-ac5b56f91dbf
Screen Reader	no
VM	0%

Extensions (26)

Extension	Author (truncated)	Version
code-gnu-global	aus	0.2.2
competitive-programming-helper	Div	5.8.7
gitlens	eam	11.6.0
prettier-vscode	esb	8.1.0
android-system-tools	fli	0.0.2
code-runner	for	0.11.5
msys2	fou	0.9.0
latex-workshop	Jam	8.20.2
better-cpp-syntax	jef	1.15.6
vscode-docker	ms-	1.16.1
python	ms-	2021.9.1191016588
vscode-pylance	ms-	2021.9.0
jupyter	ms-	2021.8.2031190714
jupyter-keymap	ms-	1.0.0
cpptools	ms-	1.6.0
vsliveshare	ms-	1.0.4761
java	red	0.81.0
LiveServer	rit	5.6.1
rust	rus	0.7.8
vscodeintellicode	Vis	1.2.14
vscode-java-debug	vsc	0.35.0
vscode-java-dependency	vsc	0.18.7
vscode-java-pack	vsc	0.18.4
vscode-java-test	vsc	0.31.3
vscode-maven	vsc	0.33.0
snippet-creator	wwa	1.1.2

(1 theme extensions excluded)

A/B Experiments

vsliv368:30146709
vsreu685:30147344
python383:30185418
pythonvspyt602:30300191
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pythonvspyt639:30300192
pythontb:30283811
pythonptprofiler:30281270
vshan820:30294714
vstes263:30335439
pythondataviewer:30285071
pythonvsuse255:30340121
vscod805:30301674
pythonvspyt200:30340761
vscextlangct:30333562
binariesv615:30325510
pythonvssor306:30344512
bridge0708:30335490
pygetstartedc2:30360494
bridge0723:30353136
pythonf5test824:30361777
vsdyn420:30356812
pydsgst2:30361792
vscus224cf:30358040
vssid140cf:30362081

[gjsjohnmurray]

/duplicate of #132150 and will be fixed in upcoming recovery release.