include ~ in possible icon name. fixes #136172

src/vs/base/common/iconLabels.ts

@@ -103,7 +103,7 @@ function doParseLabelWithIcons(text: string, firstIconIndex: number): IParsedLab
 		// within icon
 		else if (currentIconStart !== -1) {
 			// Make sure this is a real icon name
-			if (/^[a-z0-9\-]$/i.test(char)) {
+			if (/^[a-z0-9\-~]$/i.test(char)) {
 				currentIconValue += char;
 			} else {
 				// This is not a real icon, treat it as text

src/vs/base/test/common/iconLabels.test.ts

@@ -63,6 +63,11 @@ suite('Icon Labels', () => {
 		filterOk(matchesFuzzyIconAware, 'unt', parseLabelWithIcons('$(primitive-dot) $(file-text) Untitled-1'), [
 			{ start: 30, end: 33 },
 		]);
+
+		// Testing #136172
+		filterOk(matchesFuzzyIconAware, 's', parseLabelWithIcons('$(loading~spin) start'), [
+			{ start: 16, end: 17 },
+		]);
 	});
 
 	test('stripIcons', () => {