[Bug] Native VS Code terminal rendering artifacts and text overlap

Bug Description
When using Claude Code native (version 2.1.25) in the VS Code integrated terminal, the rendering is very poor. There are lots of terminal redraw artifacts all over the place, and the text overwrites itself, and is close to unusable. When using the NPM version of claude (also version 2.1.25) it is much better.

Environment Info

• Platform: win32
• Terminal: vscode
• Version: 2.1.25
• Feedback ID: 9eed4022-385f-42b9-a92e-94ea67a49167

Fixes attempted

Adjust VSCode Terminal Settings:

{
    "terminal.integrated.smoothScrolling": false,
    "terminal.integrated.enablePersistentSessions": false
}

Screenshots

<img width="1495" height="893" alt="Image" src="https://github.com/user-attachments/assets/4b46321b-3d4c-48b6-ac2f-4615dce00cb0" />

<img width="1047" height="312" alt="Image" src="https://github.com/user-attachments/assets/ad62709e-f9e7-41ad-9c6f-55f8bdfbcbd4" />