Code change:
baseEnv = await this._terminalProfileResolverService.getEnvironment(this.remoteAuthority); } const env = await terminalEnvironment.createTerminalEnvironment(shellLaunchConfig, envFromConfigValue, variableResolver, this._productService.version, this._configHelper.config.detectLocale, baseEnv); <del> if (!this._isDisposed && !shellLaunchConfig.strictEnv && !shellLaunchConfig.hideFromUser) { </del> <ins> if (!this._isDisposed && shouldUseEnvironmentVariableCollection(shellLaunchConfig)) { </ins> this._extEnvironmentVariableCollection = this._environmentVariableService.mergedCollection; this._register(this._environmentVariableService.onDidChangeCollections(newCollection => this._onEnvironmentVariableCollectionChange(newCollection)));

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. --Version: 1.85.0-insider OS: Linux (codespaces) Steps to Reproduce: in the terminal prompt is contributed via env collection by Python extension. Normal terminal: ! Hovering says that collection is applied. Hidden terminal: ! Although it says that no environment collection is contributed upon hovering, collection is still applied as can be seen in the terminal prompt.
it seems like this is actually a bug where the initially hidden terminal doesn't show the applied environments but should? Making a terminal hidden was just meant to be about visibility, not environment?
I'm fine if we change hidden terminals to also apply environment collection, as long as we get support for Python extension decided not to send activate commands to hidden terminals: , as hidden terminals are considered private terminals belonging to a specific extension. One could probably argue similarly for not applying environment collection to such terminals.
Based on offline discussion we're continue to go with NOT applying environment collection to hidden terminals, due to it affecting remote scenarios.
We investigated that env collection from shell integration in unix is still being applied on hidden terminals, i.e is still being applied when it should not. Any further updates?
Code to disable for terminals: Where vars are set:
I cannot reproduce this on Windows or macOS. Steps: Code - OSS a terminal and verify the environment does not include terminal-sample from vscode-extension-samples via symlink a terminal and verify the environment does and select the new terminal and verify the environment does not include Maybe you had the variable set in the parent environment (main/server?) which is why it showed up?