Does this issue occur when all extensions are disabled?: Yes

• VS Code Version: 1.99.1
• OS Version: Darwin arm64 24.3.0

Steps to Reproduce:

1. Setup a remote development environment that, it happens to have a shell having the same name as the host machine but in different path:

   Remote:
   

   Local:

   $ node -p 'os.userInfo().shell'
   /bin/zsh

2. Run Terminal: Create New Integrated Terminal (Local) in VS Code remote mode from command palette.

3. An error will thrown:

   

Fix:

-if (options.os === OS) {
+if (options.os === OS && options.remoteAuthority) {