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Hi,
This sounds like a Windows startup / recovery issue, not a Visual Studio Code sign-in issue. VS Code sign-in does not control the Windows boot screen.
Also, Windows 8/8.1 is no longer supported by Microsoft, so if this machine is still running that OS, the best long-term fix is to move to a supported Windows version. https://support.microsoft.com/en-us/windows/windows-8-1-support-ended-on-january-10-2023-3cfd4cde-f611-496a-8057-923fba401e93
If the PC is failing during startup, I would recommend using Windows Recovery Environment (WinRE) and trying these options in order:
Startup Repair
Startup Settings / Safe Mode
Uninstall Updates if the issue started after a recent change or installation
Microsoft guidance for these recovery options is available in the Windows Recovery Environment, Startup Settings, and Startup Repair documentation. https://support.microsoft.com/en-us/windows/windows-recovery-environment-0eb14733-6301-41cb-8d26-06a12b42770b
If you can still log in, then the next step would be to check whether a recently installed application or startup item is causing the Copilot-related error, because that would be more consistent with an app loading after sign-in than with the Windows boot process itself.
Hope this helps.