Code change:
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"https://registry.yarnpkg.com/@xterm/addon-webgl/-/addon-webgl-0.17.0-beta.16.tgz#75466614bf8ea02a3fcb0900df48724c2344d081" integrity sha512-+/eTLvSgYjvRX7oAKfpCDZdotrE8P/asCKXQtXjkbOtYRToI7kWEYfJzfgdFKFgDLKOpDdgY6Bgq384wEewlTA== "@xterm/headless@5.4.0-beta.16": version "5.4.0-beta.16" resolved "https://registry.yarnpkg.com/@xterm/headless/-/headless-5.4.0-beta.16.tgz#d12097c6c2082f14f5650169471eb120ed7600e7" integrity sha512-5GTEzrZzpjfoQrFexULq20Mqc5jbTmhkTBYk0XaE4jeZVdCvsw1yiZNDVj7/66cKOmhQMCxV809p2jQZ/BJ0ww== "@xterm/xterm@5.4.0-beta.16": version "5.4.0-beta.16" resolved "https://registry.yarnpkg.com/@xterm/xterm/-/xterm-5.4.0-beta.16.tgz#eb00506e56ba78c587fcacbada096c2af3693992" integrity sha512-ARzWYQ8LfuZIn47TS8c+XKQhn/1ZVvbHdwlpolZIrT2pTarP+71U1b6cSpF7fV+OIV6tAPA8+q4g/1ZKHuOX8g== </del> <ins> "@xterm/addon-canvas@0.6.0-beta.17": version "0.6.0-beta.17" resolved 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"https://registry.yarnpkg.com/@xterm/headless/-/headless-5.4.0-beta.17.tgz#13ff28cf8708d1d7668ecf27008a837f4002af94" integrity sha512-5Os8Wa+5+9/KA8FdHvAgdzmFGUTZv9DtHjZgtXB1hX0/yx2sCaDQgPYSwt5w52GYhh5HOxx6Olo4exb9lrKvAw== "@xterm/xterm@5.4.0-beta.17": version "5.4.0-beta.17" resolved "https://registry.yarnpkg.com/@xterm/xterm/-/xterm-5.4.0-beta.17.tgz#08897de7274a3431accf525a147a7e6034a64573" integrity sha512-EhQsTHeO7VhCOnYLdrowWAqEbmZKf6k6Z/Rd3GriikB394jivux6OBcJbt7QdewIOAKqFah53d4rNXfz3/6mwQ== </ins> agent-base@^7.0.1, agent-base@^7.0.2, agent-base@^7.1.0: version "7.1.0"

Related discussion:
text: <!-- Do Not Delete This! bugreporttemplate --<!-- Please read our Rules of Conduct: --<!-- Read our guide about submitting issues: --<!-- Search existing issues to avoid creating duplicates. --<!-- Test using the latest Insiders build to see if your issue has already been fixed: --<!-- Instead of creating your report here, use 'Report Issue' from the 'Help' menu in VS Code to pre-fill useful information. --<!-- Launch with to check. --Does this issue occur when all extensions are disabled?: Yes/No <!-- If you answered No above, use 'Help: Start Extension Bisect' from Command Palette to try to identify the cause. --<!-- Issues caused by an extension need to be reported directly to the extension publisher. The 'Help Report Issue' dialog can assist with this. --VS Code Version: Version: 1.85.0 (Universal) OS Version: Darwin arm64 22.5.0 Terminal input doesn't work ( is too slow almost feels like not working ) when using in Aux Window. Steps to Reproduce: Open Aux Terminal Window In Full Screen Mode or make it Full screen afterwords.
This seems to be working in OSS Dev container.
This looks to me like a case of scheduling something on the main window which gets throttled once hidden. is the terminal using scheduler for rendering such as RAF or ?
I can reproduce and its pretty bad.
off-topic: is there a way to move panel to separate window. e.g. bottom drawer or individually like terminal, debug console ?
PR fixing it