Cannot use latest Az module in integrated PowerShell in VSCode

[hendersonandrade]

Description

Using Az module in latest version 10.4.1, I am unable to use any cmdlets in VS Code PowerShell integrated console. The output error is:

Method 'get_SerializationSettings' in type 'Microsoft.Azure.Management.Internal.Resources.ResourceManagementClient' from assembly 'Microsoft.Azure.PowerShell.Clients.ResourceManager,
Version=1.0.0.0, Culture=neutral, PublicKeyToken=31bf3856ad364e35' does not have an implementation.
At line:1 char:1

Connect-AzAccount:

• CategoryInfo : NotSpecified: (:) [Connect-AzAccount], TypeLoadException
• FullyQualifiedErrorId : System.TypeLoadException,Microsoft.Azure.Commands.Profile.ConnectAzureRmAccountCommand

Visual Studio Code Version:

1.83.1
f1b07bd25dfad64b0167beb15359ae573aecd2cc
x64

PowerShell Extension Version:

ms-vscode.powershell@2023.9.5

Issue script & Debug output

DEBUG: Initializing ConditionalAssemblyContext. PSEdition is [Desktop]. PSVersion is [5.1.19041.3570].
DEBUG: Initializing ConditionalAssemblyProvider. AssemblyRootPath is [C:\Users\hdandra\Documents\WindowsPowerShell\Modules\Az.Accounts\2.13.1\StartupScripts\..\lib].
Connect-AzAccount : Method 'get_SerializationSettings' in type 'Microsoft.Azure.Management.Internal.Resources.ResourceManagementClient' from assembly 
'Microsoft.Azure.PowerShell.Clients.ResourceManager, Version=1.0.0.0, Culture=neutral, PublicKeyToken=31bf3856ad364e35' does not have an implementation.
At line:1 char:1
+ Connect-AzAccount
+ ~~~~~~~~~~~~~~~~~
    + CategoryInfo          : NotSpecified: (:) [Connect-AzAccount], TypeLoadException
    + FullyQualifiedErrorId : System.TypeLoadException,Microsoft.Azure.Commands.Profile.ConnectAzureRmAccountCommand

Environment data

Name                           Value                                                                                                                                                                    
----                           -----                                                                                                                                                                    
PSVersion                      5.1.19041.3570                                                                                                                                                           
PSEdition                      Desktop                                                                                                                                                                  
PSCompatibleVersions           {1.0, 2.0, 3.0, 4.0...}                                                                                                                                                  
BuildVersion                   10.0.19041.3570                                                                                                                                                          
CLRVersion                     4.0.30319.42000                                                                                                                                                          
WSManStackVersion              3.0                                                                                                                                                                      
PSRemotingProtocolVersion      2.3                                                                                                                                                                      
SerializationVersion           1.1.0.1

Module versions

ModuleType Version    Name                                ExportedCommands                                                                                                                              
---------- -------    ----                                ----------------                                                                                                                              
Script     2.13.1     Az.Accounts                         {Add-AzEnvironment, Clear-AzConfig, Clear-AzContext, Clear-AzDefault...}                                                                      
Script     4.6.0      Az.Monitor                          {Add-AzLogProfile, Add-AzMetricAlertRule, Add-AzMetricAlertRuleV2, Add-AzWebtestAlertRule...}

Error output

Resolve-AzError : Method 'get_SerializationSettings' in type 'Microsoft.Azure.Management.Internal.Resources.ResourceManagementClient' from assembly 
'Microsoft.Azure.PowerShell.Clients.ResourceManager, Version=1.0.0.0, Culture=neutral, PublicKeyToken=31bf3856ad364e35' does not have an implementation.
At line:1 char:1
+ Resolve-AzError | clip
+ ~~~~~~~~~~~~~~~
    + CategoryInfo          : NotSpecified: (:) [Resolve-AzError], TypeLoadException
    + FullyQualifiedErrorId : System.TypeLoadException,Microsoft.Azure.Commands.Profile.Errors.ResolveError

[hendersonandrade]

the same issue was opened and have more information in comments in VS Code PowerShell extension project site:

PowerShell/vscode-powershell#4808

[isra-fel]

Thanks for the feedback!
This is duplicate with #21647 which covered the assembly conflict issue that affected both Azure Automation and VSCode embedded PowerShell terminal. That issue also tracked by us internally. I'm going to close this issue.
As a workaround, I suggest installing PowerShell 7 and use it as your PowerShell terminal. The one that comes with the PowerShell extension has some preloaded modules such as PSScriptAnalyzer. We are having trouble resolving the conflict between it and Az.