diff --git a/build/azure-pipelines/win32/codesign.ts b/build/azure-pipelines/win32/codesign.ts
index dce5e55b840..1d51cb08c62 100644
--- a/build/azure-pipelines/win32/codesign.ts
+++ b/build/azure-pipelines/win32/codesign.ts
@@ -19,7 +19,7 @@ async function main() {
 	// 2. Codesign Powershell scripts
 	// 3. Codesign context menu appx package (insiders only)
 	const codesignTask1 = spawnCodesignProcess(esrpCliDLLPath, 'sign-windows', codeSigningFolderPath, '*.dll,*.exe,*.node');
-	const codesignTask2 = spawnCodesignProcess(esrpCliDLLPath, 'sign-windows-appx', codeSigningFolderPath, '*.ps1');
+	const codesignTask2 = spawnCodesignProcess(esrpCliDLLPath, 'sign-windows-appx', codeSigningFolderPath, '*.ps1,*.psm1,*.psd1,*.ps1xml');
 	const codesignTask3 = process.env['VSCODE_QUALITY'] !== 'exploration'
 		? spawnCodesignProcess(esrpCliDLLPath, 'sign-windows-appx', codeSigningFolderPath, '*.appx')
 		: undefined;
diff --git a/build/gulpfile.reh.ts b/build/gulpfile.reh.ts
index 8e7f6bbbdca..0ad08ab6fbe 100644
--- a/build/gulpfile.reh.ts
+++ b/build/gulpfile.reh.ts
@@ -83,6 +83,7 @@ const serverResourceIncludes = [
 	'out-build/vs/workbench/contrib/terminal/common/scripts/shellIntegration-rc.zsh',
 	'out-build/vs/workbench/contrib/terminal/common/scripts/shellIntegration-login.zsh',
 	'out-build/vs/workbench/contrib/terminal/common/scripts/shellIntegration.fish',
+	'out-build/vs/workbench/contrib/terminal/common/scripts/psreadline/**',
 
 ];
 
diff --git a/build/gulpfile.vscode.ts b/build/gulpfile.vscode.ts
index 0912be85425..e33ae905ad1 100644
--- a/build/gulpfile.vscode.ts
+++ b/build/gulpfile.vscode.ts
@@ -91,6 +91,7 @@ const vscodeResourceIncludes = [
 	'out-build/vs/workbench/contrib/terminal/common/scripts/*.psm1',
 	'out-build/vs/workbench/contrib/terminal/common/scripts/*.sh',
 	'out-build/vs/workbench/contrib/terminal/common/scripts/*.zsh',
+	'out-build/vs/workbench/contrib/terminal/common/scripts/psreadline/**',
 
 	// Accessibility Signals
 	'out-build/vs/platform/accessibilitySignal/browser/media/*.mp3',
diff --git a/build/next/index.ts b/build/next/index.ts
index a77b98b5c63..a5bb0796da0 100644
--- a/build/next/index.ts
+++ b/build/next/index.ts
@@ -260,6 +260,12 @@ const desktopResourcePatterns = [
 	'vs/workbench/contrib/terminal/common/scripts/*.psm1',
 	'vs/workbench/contrib/terminal/common/scripts/*.fish',
 	'vs/workbench/contrib/terminal/common/scripts/*.zsh',
+	'vs/workbench/contrib/terminal/common/scripts/psreadline/*.psd1',
+	'vs/workbench/contrib/terminal/common/scripts/psreadline/*.psm1',
+	'vs/workbench/contrib/terminal/common/scripts/psreadline/*.dll',
+	'vs/workbench/contrib/terminal/common/scripts/psreadline/*.ps1xml',
+	'vs/workbench/contrib/terminal/common/scripts/psreadline/net6plus/*.dll',
+	'vs/workbench/contrib/terminal/common/scripts/psreadline/netstd/*.dll',
 	'vs/workbench/contrib/externalTerminal/**/*.scpt',
 
 	// Media - audio
@@ -297,6 +303,12 @@ const serverResourcePatterns = [
 	'vs/workbench/contrib/terminal/common/scripts/shellIntegration-rc.zsh',
 	'vs/workbench/contrib/terminal/common/scripts/shellIntegration-login.zsh',
 	'vs/workbench/contrib/terminal/common/scripts/shellIntegration.fish',
+	'vs/workbench/contrib/terminal/common/scripts/psreadline/*.psd1',
+	'vs/workbench/contrib/terminal/common/scripts/psreadline/*.psm1',
+	'vs/workbench/contrib/terminal/common/scripts/psreadline/*.dll',
+	'vs/workbench/contrib/terminal/common/scripts/psreadline/*.ps1xml',
+	'vs/workbench/contrib/terminal/common/scripts/psreadline/net6plus/*.dll',
+	'vs/workbench/contrib/terminal/common/scripts/psreadline/netstd/*.dll',
 ];
 
 // Resources for server-web target (server + web UI)
diff --git a/src/vs/platform/terminal/node/terminalEnvironment.ts b/src/vs/platform/terminal/node/terminalEnvironment.ts
index 5aa0a0dd13a..178bed35e83 100644
--- a/src/vs/platform/terminal/node/terminalEnvironment.ts
+++ b/src/vs/platform/terminal/node/terminalEnvironment.ts
@@ -118,6 +118,7 @@ export async function getShellIntegrationInjection(
 			if (!newArgs) {
 				return { type: 'failure', reason: ShellIntegrationInjectionFailureReason.UnsupportedArgs };
 			}
+			newArgs = [...newArgs];
 			newArgs[newArgs.length - 1] = format(newArgs[newArgs.length - 1], appRoot, '');
 			envMixin['VSCODE_STABLE'] = productService.quality === 'stable' ? '1' : '0';
 			return { type, newArgs, envMixin };
diff --git a/src/vs/workbench/contrib/terminal/common/scripts/shellIntegration.ps1 b/src/vs/workbench/contrib/terminal/common/scripts/shellIntegration.ps1
index a16eaa85342..60115ec9943 100644
--- a/src/vs/workbench/contrib/terminal/common/scripts/shellIntegration.ps1
+++ b/src/vs/workbench/contrib/terminal/common/scripts/shellIntegration.ps1
@@ -176,13 +176,28 @@ elseif ((Test-Path variable:global:GitPromptSettings) -and $Global:GitPromptSett
 }
 
 if ($Global:__VSCodeState.IsA11yMode -eq "1") {
-	if (-not (Get-Module -Name PSReadLine)) {
-		$scriptRoot = Split-Path -Parent $MyInvocation.MyCommand.Path
-		$specialPsrlPath = Join-Path $scriptRoot 'psreadline'
-		Import-Module $specialPsrlPath
+	# Check if the loaded PSReadLine already supports EnableScreenReaderMode
+	$hasScreenReaderParam = (Get-Module -Name PSReadLine) -and (Get-Command Set-PSReadLineOption).Parameters.ContainsKey('EnableScreenReaderMode')
+
+	if (-not $hasScreenReaderParam) {
+		# The loaded PSReadLine lacks EnableScreenReaderMode (only available in 2.4.3+).
+		# On PS 7.5+ the module may already be removed by PS's own screen reader detection,
+		# on PS 7.0-7.4 it's still loaded and must be removed to load our bundled copy.
 		if (Get-Module -Name PSReadLine) {
-			Set-PSReadLineOption -EnableScreenReaderMode
+			Remove-Module PSReadLine -Force
 		}
+
+		# Import VS Code's bundled PSReadLine 2.4.3 which has EnableScreenReaderMode
+		$specialPsrlPath = Join-Path (Split-Path -Parent $MyInvocation.MyCommand.Path) 'psreadline'
+		if (Test-Path $specialPsrlPath) {
+			Import-Module $specialPsrlPath
+		}
+
+		$hasScreenReaderParam = (Get-Module -Name PSReadLine) -and (Get-Command Set-PSReadLineOption).Parameters.ContainsKey('EnableScreenReaderMode')
+	}
+
+	if ($hasScreenReaderParam) {
+		Set-PSReadLineOption -EnableScreenReaderMode
 	}
 }