diff --git a/dist/changelogs/12.3.3_incremental.md b/dist/changelogs/12.3.3_incremental.md
index 923d06419..1fdc31870 100644
--- a/dist/changelogs/12.3.3_incremental.md
+++ b/dist/changelogs/12.3.3_incremental.md
@@ -1 +1,2 @@
-- Work around a Windows Terminal issue where terminal launches would fail if the Windows Terminal default profile was configured to run as administrator
\ No newline at end of file
+- Work around a Windows Terminal issue where terminal launches would fail if the Windows Terminal default profile was configured to run as administrator
+- Fix terminal launches failing if local fallback shell was enabled and set to powershell
diff --git a/version b/version
index 8958eba85..021d59961 100644
--- a/version
+++ b/version
@@ -1 +1 @@
-12.3.3-1
+12.3.3