VSCode Terminal Setup: Shift+Enter Keybinding Conflict

Bug Description
I cannot get the /terminal-setup shift+enter to work no matter how I try to set it up. It worked at some point but then broke along the way. I cannot say specifically what changes broke it though, unfortunately, but it cannot be setup again. I run the command in a session and it says it "found existing VSCode terminal Shift+Enter key binding. Remove it to continue" and shows me the path to is (/Users/mark/Libnrary/Application Support/Code/User/keybindings.json). There are no other keybindings that I have set up. I have tried to remove the file and then rerun the command. It creates the same file but still does not work. It works in other applications on my computer. For example in Warp it works perfectly and just adds goes to the new line without adding any new characters. In PyCharm on this same system it works but it also enters/displays a \ backslash character and then goes to a new line and it will keep displaying that backslash. In VSCode I can manually enter a \ and then press shift+enter and it will go to a new line, but pressing the key combo by itself will always just submit the prompt.

Environment Info

• Platform: darwin
• Terminal: vscode
• Version: 1.0.86
• Feedback ID: b98d0d15-8431-4b2a-87a4-a0171e3d6289

Errors

[{"error":"Error: Request was aborted.\n    at dP.makeRequest (file:///Users/mark/.claude/local/node_modules/@anthropic-ai/claude-code/cli.js:949:3652)","timestamp":"2025-08-22T14:21:37.507Z"}]