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Re:Visual Studio Code 1.2 released by code_chimp on Tuesday June 07, 2016 @09:33AM (#11854373)
On my Windows 7 work laptop I just added the following to my settings.json:

    "terminal.external.windowsExec": "Powershell.exe",
    "terminal.integrated.shell.windows": "C:\\windows\\system32\\WindowsPowerShell\\v1.0\\powershell.exe"

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