Terminal can't create pseudoconsoles when condrv isn't loaded [Error 0xd000003a]

[dkav]

Environment

Windows build number:  0.9.433.0

Windows Terminal version (if applicable):  0.9.433.0

Running within VirtualBox VM.

Steps to reproduce

Start Windows Terminal after reboot.

Expected behavior

Powershell starts.

Actual behavior

Powershell does not start. Following messaged displayed - Error 0xd000003a when launching 'powershell.exe'. Starting Powershell directly, which opens without a problem, and then opening Powershell in Windows Terminal fixes the problem.

The following is my PATH:

C:\Windows\system32
C:\Windows
C:\Windows\System32\Wbem
C:\Windows\System32\WindowsPowerShell\v1.0\
C:\Windows\System32\OpenSSH\
C:\Users\Darren\AppData\Local\Microsoft\WindowsApps
C:\Python27\ArcGIS10.8
C:\Program Files\ArcGIS\Pro\bin\Python\Scripts

Similar issue with Command and similar resolution.

[DHowett-MSFT]

If you launch cmd, does powershell start working? I have a theory, but this will help me narrow it down.

[dkav]

Yes, launching the stand alone Command Prompt enables Powershell to start within Windows Terminal.

[DHowett-MSFT]

Okay, I bet condrv (our kernel driver) isn't being loaded. This is extremely rare, and only happens when no other console applications have been spawned on startup.

[dkav]

I have tried to keep the VM as spare as possible so I guess that would fit in with your hypothesis.