VSCode hangs when opening folder in Ubuntu 24.04

[guyrt]

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

• VS Code Version:

1.88.1
e170252f762678dec6ca2cc69aba1570769a5d39
x64

• OS Version: Ubuntu 24.04 (fresh install)

Steps to Reproduce:

1. Fresh install ubuntu and vscode (both installed today - code from apt-get)
2. open code in any folder like "code ."
3. VSCode hangs.

Last lines in the verbose logs:

[44656:0430/204913.934951:INFO:CONSOLE(655)] "%cTRACE color: #888 CommandService#executeCommand _setContext", source: vscode-file://vscode-app/snap/code/157/usr/share/code/resources/app/out/vs/workbench/workbench.desktop.main.js (655)
[44656:0430/204913.935581:INFO:CONSOLE(655)] "%cTRACE color: #888 [File Watcher (node.js)] stopping file watcher (/XXX/.git/refs/remotes/origin/main (excludes: <none>, includes: ["**/.git/objects/**/**","**/.git/subtree-cache/**/**","**/node_modules/*/**/**","**/.hg/store/**/**"], correlationId: <none>))", source: vscode-file://vscode-app/snap/code/157/usr/share/code/resources/app/out/vs/workbench/workbench.desktop.main.js (655)
[44656:0430/204913.946089:INFO:CONSOLE(655)] "%cTRACE color: #888 [File Watcher (node.js)] Request to start watching: /XXX/.git/refs/remotes/origin/main (excludes: <none>, includes: ["**/.git/objects/**/**","**/.git/subtree-cache/**/**","**/node_modules/*/**/**","**/.hg/store/**/**"], correlationId: <none>)", source: vscode-file://vscode-app/snap/code/157/usr/share/code/resources/app/out/vs/workbench/workbench.desktop.main.js (655)
[44656:0430/204913.946653:INFO:CONSOLE(655)] "%cTRACE color: #888 [File Watcher (node.js)] ignoring a path for watching who's stat info failed to resolve: /XXX/.git/refs/remotes/origin/main (error: Error: ENOENT: no such file or directory, stat '/XXX/.git/refs/remotes/origin/main')", source: vscode-file://vscode-app/snap/code/157/usr/share/code/resources/app/out/vs/workbench/workbench.desktop.main.js (655)
[44656:0430/204913.959913:INFO:CONSOLE(655)] "%cTRACE color: #888 [mainThreadSecretState] Getting password for vscode.github-authentication extension:  github.auth", source: vscode-file://vscode-app/snap/code/157/usr/share/code/resources/app/out/vs/workbench/workbench.desktop.main.js (655)

I tried with folders that aren't tracked in git.