Exercise 1: Console Works, VS Code Doesn't — Possible Solution
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WHY THIS HAPPENS
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Per this chapter, $PROFILE (used alone, the way Fundamentals 11 introduced it) is really just shorthand for $PROFILE.CurrentUserCurrentHost - one of four distinct profile scripts, and specifically the one tied to ONE particular host. The classic PowerShell console and VS Code's own integrated terminal are treated as genuinely separate hosts by PowerShell, even though they run the identical underlying engine. A customization saved into CurrentUserCurrentHost only ever gets loaded by whichever specific host that file belongs to - it working correctly in the console and not existing at all in VS Code isn't a bug or inconsistency; it's two different hosts each reading their own separate profile file, and only one of them has the customization saved to it.

THE FIX
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Per this chapter, saving the customization to $PROFILE.CurrentUserAllHosts instead - the profile scoped to this same user but EVERY host - makes it apply consistently everywhere: the console, VS Code's terminal, the ISE, Windows Terminal, and any other host that same user opens PowerShell in.

WHY THIS WORKS AS AN ANSWER
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It correctly explains that $PROFILE by itself only targets one specific host (CurrentUserCurrentHost), correctly identifies the console and VS Code's terminal as genuinely separate hosts, and correctly names CurrentUserAllHosts as the property that resolves the issue.