Change:
"vscode-proxy-agent": "^0.12.0", "vscode-regexpp": "^3.1.0", "vscode-textmate": "7.0.1", <del> "xterm": "5.0.0-beta.36", "xterm-addon-canvas": "0.2.0-beta.17", </del> <ins> "xterm": "5.0.0-beta.44", "xterm-addon-canvas": "0.2.0-beta.21", </ins> "xterm-addon-search": "0.10.0-beta.5", "xterm-addon-serialize": "0.8.0-beta.5", "xterm-addon-unicode11": "0.4.0-beta.5", <del> "xterm-addon-webgl": "0.13.0-beta.37", </del> <ins> "xterm-addon-webgl": "0.13.0-beta.45", </ins> "xterm-headless": "5.0.0-beta.5", "yauzl": "^2.9.2", "yazl": "^2.4.3"

Discussion:
Testing Version: 1.71.0-insider Commit: Date: 2022-08-23T05:19:02.563Z Electron: 19.0.12 Chromium: 102.0.5005.167 16.14.2 V8: 10.2.154.15-electron.0 OS: Darwin x64 21.6.0 Sandboxed: Yes set setting terminal.integrated.gpuAcceleration: on in a terminal type: followed by and a new line ! Especially under the there's a lot of space so I would say it can't be antialiasing that interferes
Good find, the stroke seems oddly large on the here.
Upstream:
Looks better on the Mac now. !

Does this issue occur when all extensions are disabled?: Yes VS Code Version:1.70 OS Version: windows 10 Steps to Reproduce: I upgrade the vscode to 1.70 version it's terminal is seems performing slowly
Thanks for creating this issue! It looks like you may be using an old version of VS Code, the latest stable release is 1.70.0. Please try upgrading to the latest version and checking whether this issue remains. Happy Coding!
Please see for creating actionable performance problem issues. /label info-needed terminal
My team has been seeing a large slow down with the terminal when in a devcontainer's main project directory. It's fast once you leave it.
I just tried disabling newly enabled shellIntegration setting and it sped back up. Operating System: macOS 12.5 Hardware: MacBook Pro 13-inch, M1, 2020) 16 GB Memory Visual Studio Code: Version 1.70.0 Universal
what shell are you using?
zsh. My team is all on M1 MacBook Pro's. One person has oh-my-zsh installed. I have rocketship. The rest are stock. This is in a decent sized monorepo in a Node+TypeScript devcontainer. The same behavior does not appear in the stock/empty Node+TypScript devcontainer. I have not tried it locally (outside the container) as we don't work that way.
adding your comment from for more context:
I get the similar performance issue, using nushell, with MacBook Pro (not M1)
I'm also having bad performance with the new enabled with powershell on Windows 11; it manifests as a huge delay to focus the terminal, or the whole editor freezing and asking if I want to restart it, or, not even being able to launch a new terminal (the pane is blank). Sometimes when it happens, is using a large amount of CPU. The main problem is that it's intermittent and I can't seem go get a profile of it... but I'm trying.
I fixed several performance regressions in the last few days: , , I expect this to be fixed in v1.72 (September)
Can you please provides steps to verify this?
This is a bit hard to verify, but myself and have already tested it fairly thoroughly
Just commenting to give anecdotal data.

In 1.72.0 the example I gave in the duplicate issue now renders in 12-15 seconds depending on the run for an 11.8 second run with lots of text. Previously it was rendering in 39.7 seconds. The integrated terminal is definitely usable again, thanks! (at least on my box )