Does this issue occur when all extensions are disabled?: Yes/No
👉 Not relevant.

• VS Code Version: 1.71.0, 784b017, x64
• OS Version: Debian 11 (bullseye)

Steps to Reproduce:

1. Open codespace in browser
2. Open Terminal
   • Safari falls back to the DOM render, as canvas can not be loaded [and WebGL is not supported disabled for Safari by VS Code].
3. Reload page
   👉 An artefact is overlaying the output in the Terminal.
   

Everything works fine with Firefox as it uses the WebGL renderer.