Visual Studio Code installer fails to register file associations for supported file types

[skycommand]

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

• VS Code Version: 1.81.1
• OS Version: Windows 10.0.19045.3393

Steps to Reproduce:

1. Create a virtual machine containing a clean version of Windows 10
2. Log in with a user account with admin privileges.
3. Download VSCodeSetup-x64-1.81.1.exe. (If enough time has passed and version 1.81.1 isn't available download the latest machine-wide installer.)
4. Run the installer.
5. Proceed with installation but be sure to check "Register Code as an editor for supported file types."
6. Create a new standard user account (without administrative privileges)
7. Log out
8. Log in with the new standard user account
9. Create the following blank files. You can do so on the desktop.
   • Test.cpp
   • Test.cs
   • Test.css
   • Test.html
   • Test.html
   • Test.js
   • Test.json
   • Test.markdown
   • Test.md
   • Test.ps1
   • Test.svg
   • Test.xml
   • Test.yaml

Expected results: Not all of them are associated with Visual Studio Code but the user should be able to associate them via the Settings app → Apps and Features → Default Apps → Set defaults by app.

Actual results: Not all of them are associated with Visual Studio Code and the user cannot adjust the association via the Settings app → Apps and Features → Default Apps → Set defaults by app.

Please resist the temptation to tell me "you can drag and drop files into VSCode" or "you can use the Open With command." Users can do all of those things without putting a checkmark next to "Register Code as an editor for supported file types." So, what does that checkmark even do?