diff --git a/package-lock.json b/package-lock.json
index 514363a8a74..11311ca686d 100644
--- a/package-lock.json
+++ b/package-lock.json
@@ -199,7 +199,7 @@
                 "util": "^0.12.4"
             },
             "engines": {
-                "vscode": "^1.104.0"
+                "vscode": "^1.102.0"
             },
             "optionalDependencies": {
                 "fsevents": "^2.3.2"
diff --git a/package.json b/package.json
index a5981e1ce85..4c3f487ed30 100644
--- a/package.json
+++ b/package.json
@@ -29,7 +29,7 @@
         "theme": "light"
     },
     "engines": {
-        "vscode": "^1.104.0"
+        "vscode": "^1.102.0"
     },
     "l10n": "./l10n",
     "extensionKind": [
diff --git a/src/platform/common/extensions.unit.test.ts b/src/platform/common/extensions.unit.test.ts
index 5481b4dd368..efd6eee0949 100644
--- a/src/platform/common/extensions.unit.test.ts
+++ b/src/platform/common/extensions.unit.test.ts
@@ -87,4 +87,45 @@ suite('String Extensions', () => {
         expect(trimQuotes(quotedString3)).to.be.equal(expectedString);
         expect(trimQuotes(quotedString4)).to.be.equal(expectedString);
     });
+
+    // Tests for Windows paths with special characters (issue #16932)
+    test('Should quote Windows paths with spaces in username', () => {
+        const pathToTest = 'C:\\Users\\John Smith\\AppData\\Local\\env\\python.exe';
+        expect(toCommandArgument(pathToTest)).to.be.equal(`"${pathToTest}"`);
+    });
+    test('Should quote Windows paths with parentheses in username', () => {
+        const pathToTest = 'C:\\Users\\John(Contractor)\\AppData\\Local\\env\\python.exe';
+        expect(toCommandArgument(pathToTest)).to.be.equal(`"${pathToTest}"`);
+    });
+    test('Should quote Windows paths with both spaces and parentheses', () => {
+        const pathToTest = 'C:\\Users\\John Smith (Contractor)\\AppData\\Local\\env\\python.exe';
+        expect(toCommandArgument(pathToTest)).to.be.equal(`"${pathToTest}"`);
+    });
+    test('Should quote file paths with special characters and normalize slashes', () => {
+        const pathToTest = 'C:\\Users\\John(Contractor)\\AppData\\Local\\env\\python.exe';
+        const expectedPath = 'C:/Users/John(Contractor)/AppData/Local/env/python.exe';
+        expect(fileToCommandArgument(pathToTest)).to.be.equal(`"${expectedPath}"`);
+    });
+    test('Should handle already quoted paths correctly', () => {
+        const pathToTest = '"C:\\Users\\John(Contractor)\\AppData\\Local\\env\\python.exe"';
+        // toCommandArgument should not double-quote if already quoted
+        expect(toCommandArgument(pathToTest)).to.be.equal(pathToTest);
+    });
+    test('Should quote paths with other shell metacharacters', () => {
+        const pathWithAmpersand = 'C:\\Users\\John&Jane\\python.exe';
+        const pathWithPipe = 'C:\\Users\\John|Jane\\python.exe';
+        const pathWithLessThan = 'C:\\Users\\John<Jane\\python.exe';
+        const pathWithGreaterThan = 'C:\\Users\\John>Jane\\python.exe';
+        const pathWithCaret = 'C:\\Users\\John^Jane\\python.exe';
+
+        expect(toCommandArgument(pathWithAmpersand)).to.be.equal(`"${pathWithAmpersand}"`);
+        expect(toCommandArgument(pathWithPipe)).to.be.equal(`"${pathWithPipe}"`);
+        expect(toCommandArgument(pathWithLessThan)).to.be.equal(`"${pathWithLessThan}"`);
+        expect(toCommandArgument(pathWithGreaterThan)).to.be.equal(`"${pathWithGreaterThan}"`);
+        expect(toCommandArgument(pathWithCaret)).to.be.equal(`"${pathWithCaret}"`);
+    });
+    test('Should not quote paths without special characters', () => {
+        const normalPath = 'C:\\Users\\JohnSmith\\AppData\\Local\\env\\python.exe';
+        expect(toCommandArgument(normalPath)).to.be.equal(normalPath);
+    });
 });
diff --git a/src/platform/common/helpers.ts b/src/platform/common/helpers.ts
index 8e9ab27ded3..ea99f3e6392 100644
--- a/src/platform/common/helpers.ts
+++ b/src/platform/common/helpers.ts
@@ -23,19 +23,22 @@ export function splitLines(
 
 /**
  * Appropriately formats a string so it can be used as an argument for a command in a shell.
- * E.g. if an argument contains a space, then it will be enclosed within double quotes.
+ * E.g. if an argument contains a space or special characters, then it will be enclosed within double quotes.
  * @param {String} value.
  */
 export function toCommandArgument(value: string): string {
     if (!value) {
         return value;
     }
-    return value.indexOf(' ') >= 0 && !value.startsWith('"') && !value.endsWith('"') ? `"${value}"` : value.toString();
+    // Check for special characters that require quoting in shell commands
+    // This includes spaces, parentheses, and other shell metacharacters
+    const needsQuoting = /[\s()&|<>^]/.test(value);
+    return needsQuoting && !value.startsWith('"') && !value.endsWith('"') ? `"${value}"` : value.toString();
 }
 
 /**
  * Appropriately formats a a file path so it can be used as an argument for a command in a shell.
- * E.g. if an argument contains a space, then it will be enclosed within double quotes.
+ * E.g. if an argument contains a space or special characters, then it will be enclosed within double quotes.
  */
 export function fileToCommandArgument(value: string): string {
     if (!value) {