Terminal does not detect failure in activated environments when activated using PS1 script

[karthiknadig]

OS windows

Expected:

Actual:

Repro steps:

1. Create a virtual environment using python -m venv .venv.
2. Activate the virtual environment using the PS1 script in powershell (i.e., > .venv\Scripts\activate.ps1)
3. Your prompt now will have (.venv) prepended.
4. Try to run some module that is not installed: python -m ruff
5. you get a blue dot instead of the red one.