Terminals not working beyond 2026.1.3

I've currently tested terminals on multiple versions of PSU on Windows Server 2022 and 2026 as well as Ubuntu 24.04.4. I start a fresh install, and without fail so far, every version beyond 2026.1.3 will fail to launch any terminal other than one tied to the Integrated environment. This includes the current latest, 2026.2.1 with the built-in PS7 environment as well as the Windows PowerShell environment on Windows.


The logs seem to show that it is launching successfully but it does not show this in the GUI:

[11:47:56 INF] PowerShellUniversal.Automation.JobProcessManager Starting job using Process as interactive.
[11:47:56 DBG] PowerShellUniversal.Automation.JobProcessManager Agent Output: Received: ParentProcessId: 18064 UniversalPort: 62209 InstanceId: 9
[11:47:56 DBG] PowerShellUniversal.Automation.JobProcessManager Agent Output: Connecting to universal.
[11:47:56 DBG] PowerShellUniversal.Automation.JobProcessManager Agent Output: D0629 11:47:56.370232 Grpc.Core.Internal.UnmanagedLibrary Attempting to load native library "D:\psu\versions\Universal.win-x64.2026.2.1\Hosts\7.5\grpc_csharp_ext.x64.dll"
[11:47:56 DBG] PowerShellUniversal.Automation.JobProcessManager Agent Output: D0629 11:47:56.429861 Grpc.Core.Internal.NativeExtension gRPC native library loaded successfully.
[11:47:56 DBG] PowerShellUniversal.Automation.JobProcessManager Agent Output: Server port:61507

I've not been able to find anyone else reporting this happening, but it's been pretty consistent for me across multiple servers and OSes. Anyone else see this or know of a solution?