Terminal creation failure

I have been trying to open the terminal session in RStudio & is failing with 'Terminal Creation Failure' message.

Global Terminal Information

Loaded TerminalSessions: 2
Handle: '030C1036' Caption: 'Terminal 1'
Handle: 'AD0FEC37' Caption: 'Terminal 2'

Terminal List Count: 2
Handle: '030C1036' Caption: 'Terminal 1' Session Created: true
Handle: 'AD0FEC37' Caption: 'Terminal 2' Session Created: true

Current Terminal Session Information

Caption: 'Terminal 2'
Title: ''
Cols x Rows '114 x 14'
Shell: 'Git Bash'
Handle: 'AD0FEC37'
Sequence: '2'
Restarted: 'false
Exit Code: 'null'
Full screen: 'client=false/server=false'
Zombie: 'false'
Track Env 'false'
Local-echo: 'false'
Working Dir: 'Default'
Interactive: 'Always'
WebSockets: 'false'

System Information

Desktop: 'true'
Remote: 'false'
Platform: 'Windows'

Connection Information

2021/5/26 10:26:36: Connected with RPC
2021/5/26 10:26:40: Disconnected

Local-echo Match Failures

The Shell is set to 'Git Bash', and you are on Windows.
Have you installed Git for Windows ?

How to install Git Bash
Git Bash comes included as part of the Git For Windows package. Download and install Git For Windows like other Windows applications. Once downloaded find the included .exe file and open to execute Git Bash.

If so what happens when you try to load Git Bash directly from your start menu without R Studio involved ?

Here is the screenshot of the error.
image

I don't think its a bash issue. I ensured it is for Windows.

$ git --version
git version 2.29.1.windows.1

I could also successfully open bash instance from start menu without any issue.