On a Windows 7 machine, on the current version of VS Code and PowerShell 5.0.10586.117.
The integrated terminal for PowerShell has no color syntax highlighting. Changing the PSReadLine options has not effect and revert back when restarting the terminal session or upon a re-launch of VS Code.
Is this expected behavior or a bug? The syntax highlighting works in PowerShell.exe and PowerShell ISE.