A drive with the name '.C' does not exist #22047

I also get the same issue, Running any command will prompt Cannot find drive. A drive with the name '.C' does not exist.

PS E:\04Code\Python> a
a: Cannot find drive. A drive with the name '.C' does not exist.
PS E:\04Code\Python> cd
cd: Cannot find drive. A drive with the name '.C' does not exist.
PS E:\04Code\Python> mv
mv: Cannot find drive. A drive with the name '.C' does not exist.

And I noticed a problem with the terminal's PATH environment variable, where one of the paths is incorrectly prefixed with ., whereas in reality the path is not preceded by ..

Turning pythonTerminalEnvVarActivation off can resolve the problem.

Python extension version: 2023.16
Vscode version: 1.82.2
OS: Windows 10

Originally posted by Cesar (@cesaryuan) in #21864 (comment)