Does this issue occur when all extensions are disabled?: Yes/No
Yes it does

• VS Code Version: 1.71.2
• OS Version: win 11

Windows 11 adds the "SnapLayouts" feature to the maximize/restore button in the titel-bar of any window. When you hover over the button the flyout appears and let's you choose a window layout. The feature can also be activated by pressing Win + z on the keyboard.

The flyout worked as expected in 1.71.1 it started not to appear with 1.71.2 the keyboard shortcut still works.

[All the Snap-Layout features are enabled systemwide on my machine, and other windows still show the flyout as expexted.]