Markdown files are not openable because of GitHub Copilot

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

• VS Code Version: Code 1.106.0
• OS Version: Windows 11 Pro 10.0.26100 Build 26100

Steps to Reproduce:

1. Open VS Code
2. ???
3. VS Code randomly signs you out, prompt asks you to "Sign in with to use GitHub Copilot" or whatever
4. Ignore that because you disabled it for Markdown anyways and will take a look at it later
5. Markdown files won't open, and will just indefinitely buffer. Literally cannot view the contents without changing the file extensions. All other files work, though???
6. Spend an hour trying to disable all extensions and restarting VS Code multiple times. Yes, I did have a couple of Markdown extensions installed. Uninstalling all of them and restarting VS Code did not change anything, however.
7. Finally give in and press "Sign In" at the Copilot prompt, praying to yourself that this does not fix it
8. It fixes it

Probably one of the weirdest and most infuriating problems I've ever encountered. Especially when considering that I literally had Copilot turned off for Markdown!!! I will be completely disabling everything that has to do with Copilot from now on.