Deletion of directory '...' failed. Should I try again? (y/n)

[Forge36]

Does this issue occur when all extensions are disabled?: Yes

• VS Code Version:

1.86.2
903b1e9d8990623e3d7da1df3d33db3e42d80eda
x64

• OS Version:

Edition	Windows 10 Enterprise
Version	22H2
OS build	19045.3930
Experience	Windows Feature Experience Pack 1000.19053.1000.0

Steps to Reproduce:

1. Configure VS Code as git's editor git config --global core.editor = 'code --wait --reuse-window --disable-extensions'
2. start an interactive rebase git rebase HEAD~2 -i
3. Delete all text in the rebase file
4. Save
5. Close visual studio

See error: Deletion of directory '...' failed. Should I try again? (y/n)

I'm also using windows terminal with git-bash and this entirely breaks the terminal forcing me to close the tab.

There does appear to be a race condition as leaving visual studio open for a longer period of time does not exhibit the error (i.e. it's inconsistent).