Change:
Testing Code insiders, set how the inactive selection colour is stronger than the active selection colour I can only reproduce this with "canvas", all other gpu acceleration options work fine. Terminal focused ! Terminal not focused !
Upstream:

Discussion:
"vscode-proxy-agent": "^0.12.0", "vscode-regexpp": "^3.1.0", "vscode-textmate": "8.0.0", <del> "xterm": "5.1.0-beta.82", "xterm-addon-canvas": "0.3.0-beta.33", </del> <ins> "xterm": "5.1.0-beta.87", "xterm-addon-canvas": "0.3.0-beta.35", </ins> "xterm-addon-search": "0.11.0-beta.7", "xterm-addon-serialize": "0.9.0-beta.3", "xterm-addon-unicode11": "0.5.0-beta.5", <del> "xterm-addon-webgl": "0.14.0-beta.46", "xterm-headless": "5.1.0-beta.82", </del> <ins> "xterm-addon-webgl": "0.14.0-beta.50", "xterm-headless": "5.1.0-beta.87", </ins> "yauzl": "^2.9.2", "yazl": "^2.4.3" },

"tas-client-umd": "0.1.6", "vscode-oniguruma": "1.7.0", "vscode-textmate": "8.0.0", <del> "xterm": "5.1.0-beta.82", "xterm-addon-canvas": "0.3.0-beta.33", </del> <ins> "xterm": "5.1.0-beta.87", "xterm-addon-canvas": "0.3.0-beta.35", </ins> "xterm-addon-search": "0.11.0-beta.7", "xterm-addon-unicode11": "0.5.0-beta.5", <del> "xterm-addon-webgl": "0.14.0-beta.46" </del> <ins> "xterm-addon-webgl": "0.14.0-beta.50" </ins> } }

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resolved "https://registry.yarnpkg.com/wrappy/-/wrappy-1.0.2.tgz#b5243d8f3ec1aa35f1364605bc0d1036e30ab69f" integrity sha1-tSQ9jz7BqjXxNkYFvA0QNuMKtp8= <del> xterm-addon-canvas@0.3.0-beta.33: version "0.3.0-beta.33" resolved "https://registry.yarnpkg.com/xterm-addon-canvas/-/xterm-addon-canvas-0.3.0-beta.33.tgz#5f6f673df9f8e9ea82d980a93adb8f0fe1ec5f0f" integrity sha512-nKZ3ieluM6GthY4LCOMF2uWtrHASz6efm9pekgeEmLz5DOINyCBSm2SsPp3s9edLTWMGHp8oe+diSk/+sz65cA== </del> <ins> xterm-addon-canvas@0.3.0-beta.35: version "0.3.0-beta.35" resolved "https://registry.yarnpkg.com/xterm-addon-canvas/-/xterm-addon-canvas-0.3.0-beta.35.tgz#2f85f9df9b109d51a8ce08a6023db747f4d060d5" integrity sha512-chk/+FaUPEAC33Mt6PDLbUWlzDCCoXBWJvKykMfhZF0vCm8GqpJc3z6R9jdcZcNCPUhmmv5psRTYun6oy5TvBQ== </ins> xterm-addon-search@0.11.0-beta.7: version "0.11.0-beta.7"

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dependencies: object-keys "~0.4.0" <del> xterm-addon-canvas@0.3.0-beta.33: version "0.3.0-beta.33" resolved "https://registry.yarnpkg.com/xterm-addon-canvas/-/xterm-addon-canvas-0.3.0-beta.33.tgz#5f6f673df9f8e9ea82d980a93adb8f0fe1ec5f0f" integrity sha512-nKZ3ieluM6GthY4LCOMF2uWtrHASz6efm9pekgeEmLz5DOINyCBSm2SsPp3s9edLTWMGHp8oe+diSk/+sz65cA== </del> <ins> xterm-addon-canvas@0.3.0-beta.35: version "0.3.0-beta.35" resolved "https://registry.yarnpkg.com/xterm-addon-canvas/-/xterm-addon-canvas-0.3.0-beta.35.tgz#2f85f9df9b109d51a8ce08a6023db747f4d060d5" integrity sha512-chk/+FaUPEAC33Mt6PDLbUWlzDCCoXBWJvKykMfhZF0vCm8GqpJc3z6R9jdcZcNCPUhmmv5psRTYun6oy5TvBQ== </ins> xterm-addon-search@0.11.0-beta.7: version "0.11.0-beta.7"

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