diff --git a/src/cascadia/TerminalConnection/AzureConnection.cpp b/src/cascadia/TerminalConnection/AzureConnection.cpp
index b8c5e31a0b9..9bddedb958b 100644
--- a/src/cascadia/TerminalConnection/AzureConnection.cpp
+++ b/src/cascadia/TerminalConnection/AzureConnection.cpp
@@ -687,6 +687,25 @@ namespace winrt::Microsoft::Terminal::TerminalConnection::implementation
         _state = AzureState::TermConnecting;
     }
 
+    // Method description:
+    // - Helper function to parse the preferred shell type from user settings returned by cloud console API.
+    // We need this function because the field might be missing in the settings
+    // created with old versions of cloud console API.
+    std::optional<utility::string_t> AzureConnection::_ParsePreferredShellType(const web::json::value& settingsResponse)
+    {
+        if (settingsResponse.has_object_field(L"properties"))
+        {
+            const auto userSettings = settingsResponse.at(L"properties");
+            if (userSettings.has_string_field(L"preferredShellType"))
+            {
+                const auto preferredShellTypeValue = userSettings.at(L"preferredShellType");
+                return preferredShellTypeValue.as_string();
+            }
+        }
+
+        return std::nullopt;
+    }
+
     // Method description:
     // - helper function to connect the user to the Azure cloud shell
     void AzureConnection::_RunConnectState()
@@ -706,9 +725,9 @@ namespace winrt::Microsoft::Terminal::TerminalConnection::implementation
         _WriteStringWithNewline(RS_(L"AzureSuccess"));
 
         // Request for a terminal for said cloud shell
-        const auto shellType = settingsResponse.at(L"properties").at(L"preferredShellType").as_string();
+        const auto shellType = _ParsePreferredShellType(settingsResponse);
         _WriteStringWithNewline(RS_(L"AzureRequestingTerminal"));
-        const auto socketUri = _GetTerminal(shellType);
+        const auto socketUri = _GetTerminal(shellType.value_or(L"pwsh"));
         _TerminalOutputHandlers(L"\r\n");
 
         // Step 8: connecting to said terminal
diff --git a/src/cascadia/TerminalConnection/AzureConnection.h b/src/cascadia/TerminalConnection/AzureConnection.h
index 4db0a9619b4..b2afd99ab2e 100644
--- a/src/cascadia/TerminalConnection/AzureConnection.h
+++ b/src/cascadia/TerminalConnection/AzureConnection.h
@@ -95,6 +95,8 @@ namespace winrt::Microsoft::Terminal::TerminalConnection::implementation
         std::optional<std::wstring> _ReadUserInput(InputMode mode);
 
         web::websockets::client::websocket_client _cloudShellSocket;
+
+        static std::optional<utility::string_t> _ParsePreferredShellType(const web::json::value& settingsResponse);
     };
 }