Changing your VS Code Terminal to PowerShell 7.1 downloaded from Windows Store.

1. Find where your pwsh.exe is installed, in my case, it was installed in

C:\Program Files\WindowsApps\Microsoft.PowerShell_7.1.0.0_x64__8wekyb3d8bbwe
cd 'C:/Program Files/WindowsApps'

2. Then go to VS Code and open your command palette Ctrl-Shift-P and type Preferences: Open Settings to open your settings.json and find the “terminal.integrated.shell.windows” property.

3. Change it to :

"terminal.integrated.shell.windows": "C:\\Program Files\\WindowsApps\\Microsoft.PowerShell_7.1.0.0_x64__8wekyb3d8bbwe\\pwsh.exe"

That’s it.