Nested Errors Are Not Output During Debugging

[marshallwp]

Issue Description

If you debug a script containing nested error handling, any errors thrown by a nested function do not print to the integrated terminal, regardless of ErrorAction preference. Instead, such errors stop execution but do not print to console.

This behavior differs from the behavior of both a standalone powershell terminal, and the behavior of the Integrated Terminal if the script is invoked directly via dot-sourcing.

Simple Example:

function test-error {
[CmdletBinding()]
Param(
    [ValidateNotNullOrEmpty()]
    [string]$str
)
    Write-Host $str
}

try{
    test-error -str $null -ErrorAction Stop
    Write-Host "This should not print"
}
catch {
    throw $_
}

Behavior when debugging in Visual Code:

                  =====> PowerShell Integrated Console <=====


PS C:\Users\user> c:\Users\user\Desktop\test.ps1

PS C:\Users\user> PS C:\Users\user>

Behavior when dot-sourcing in Visual Code:

                  =====> PowerShell Integrated Console <=====


PS C:\Users\user> ."C:\Users\user\Desktop\test.ps1"

Exception: C:\Users\user\Desktop\test.ps1:11:21
Line |
  11 |      test-error -str $null -ErrorAction Stop
     |                      ~~~~~
     | Cannot validate argument on parameter 'str'. The argument is null or empty. Provide an argument that is not null or empty, and then try the command again.

PS C:\Users\user>

Behavior In Stand-Alone Powershell:

PowerShell 7.0.0
Copyright (c) Microsoft Corporation. All rights reserved.

https://aka.ms/powershell
Type 'help' to get help.

PS C:\Users\user> ."C:\Users\user\Desktop\test.ps1"
Exception: C:\Users\user\Desktop\test.ps1:11
Line |
  11 |      test-error -str $null -ErrorAction Stop
     |                      ~~~~~
     | Cannot validate argument on parameter 'str'. The argument is null or empty. Provide an argument that
     | is not null or empty, and then try the command again.

PS C:\Users\user>

Attached Logs

6-PowerShell Editor Services.zip

Environment Information

Visual Studio Code

Name	Version
Operating System	Windows_NT x64 10.0.18363
VSCode	1.43.0
PowerShell Extension Version	2020.3.0

PowerShell Information

Name	Value
PSVersion	7.0.0
PSEdition	Core
GitCommitId	7.0.0
OS	Microsoft Windows 10.0.18363
Platform	Win32NT
PSCompatibleVersions	1.0 2.0 3.0 4.0 5.0 5.1.10032.0 6.0.0 6.1.0 6.2.0 7.0.0
PSRemotingProtocolVersion	2.3
SerializationVersion	1.1.0.1
WSManStackVersion	3.0

Visual Studio Code Extensions

Visual Studio Code Extensions(Click to Expand)

Extension	Author	Version
better-comments	aaron-bond	2.0.5
mssql	ms-mssql	1.9.0
oracledevtools	Oracle	19.3.2
powershell	ms-vscode	2020.3.0
vscode-firefox-debug	firefox-devtools	2.7.0

[SydneyhSmith]

Thanks @BinaryWizard904 looks like it is probably the same issue as #2534 we are investigating the cause.