Blank terminal window pops open on every Bash/PowerShell tool call after updating to 2.1.271 (Windows)

Description
After the Claude Code VS Code extension auto-updated today, a blank terminal window started popping open every time the agent (Claude) runs a Bash/PowerShell tool call. It opens with no visible output, then closes shortly after. This did not happen before the update.

Environment

• Claude Code extension: updated from 2.1.270 → 2.1.271 today (2026-09-14, ~21:27 local time)
• VS Code version: 1.132.1
• OS: Windows 11 (Windows_NT 10.0.26200)
• Shell: PowerShell / Git Bash

Observed behavior

• A window/terminal tab titled with a filesystem path (e.g. C:\Users\<user>\AppData\Local\...) opens on screen every time a Bash or PowerShell tool call runs.
• The window shows a blank/black content area, no visible prompt or output.
• It appears and disappears repeatedly during a session with multiple tool calls, which is disruptive.
• Found VS Code setting "Terminal > Integrated > Tabs: Allow Agent CLI Title" (mentions Claude Code, Codex, Command Code, GitHub Copilot CLI, Gemini CLI by name) — this looks like a new feature tied to this behavior, but disabling it only changes the tab title text, not whether the window/panel appears.

Expected behavior
Tool-call terminal execution should not visibly pop open a window/panel that steals screen focus for every command, especially when output isn't needed by the user.

Question
Is there a way to suppress/hide this terminal window entirely (run tool calls in the background without a visible UI), or is this a known regression from the 2.1.271 update?