Calling "Start-Process pwsh" within IDE mangles PATH. Windows x86 Powershell 7.6.4 #27854

Prerequisites

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• Make sure you are able to repro it on the latest released version
• Search the existing issues.
• Refer to the FAQ.
• Refer to Differences between Windows PowerShell 5.1 and PowerShell.

Steps to reproduce

From an IDE (I tested VSCode 1.133.0 x64 and Zed 1.15.0) open a pwsh.exe terminal and call:
Start-Process pwsh -ArgumentList '-NoExit -Command "$env:PATH"'

(This does not happen when using the default windows terminal)

Expected behavior

In the new terminal window, Path is same as in parent IDE terminal window

Actual behavior

Path is just:
`C:\Program Files\PowerShell\7;C:\Program Files\WindowsApps\Microsoft.PowerShell_7.6.4.0_x64__8wekyb3d8bbwe`

Error details

Environment data

Name                           Value
----                           -----
PSVersion                      7.6.4
PSEdition                      Core
GitCommitId                    7.6.4
OS                             Microsoft Windows 10.0.26200
Platform                       Win32NT
PSCompatibleVersions           {1.0, 2.0, 3.0, 4.0…}
PSRemotingProtocolVersion      2.4
SerializationVersion           1.1.0.1
WSManStackVersion              3.0

Visuals

Edition Windows 11 Enterprise
Version 25H2
Installed on ‎12.‎2.‎2025
OS build 26200.9106
Experience Windows Feature Experience Pack 1000.26100.334.0