Type: Bug

Here's where I observed it, but I don't think it is caused by an extension bug.

1. Be on Windows.
2. Have Docker Desktop installed.
3. Have the Container Tools extension installed.
4. Have no folders open.
5. In the Containers view open the context menu of a running container and choose Attach Shell

🐛 in the new Terninal session that opens, the message is:

 *  Executing task: & 'C:\Program Files\Docker\Docker\resources\bin\docker.EXE' exec -it ddbef73aec5cce21c5fa43cb2303a43919475a2d365c861c203175faf671a88c bash 


 *  The terminal process failed to launch: Cannot launch a terminal process in an untrusted workspace with cwd C:\Users\JohnM and userHome c:\Users\JohnM. 

As well as erroneously comparing the cwd and userHome values case-sensitively the message misleads by referring to an "untrusted workspace". The code implies it should say "empty workspace".

VS Code version: Code 1.109.0 (bdd88df, 2026-02-04T02:01:38.288Z)
OS version: Windows_NT x64 10.0.26200
Modes: