I'm not deeply familiar with the vscode internals but figured that they were doing something similar as many issues and error messages that were thrown by shells and various programs led me to some vscode issue with the same problem many times.
Because it turns out in practice some shells and programs do not like being run in the background in a dumb terminal as this is an obscure use case.
Because it turns out in practice some shells and programs do not like being run in the background in a dumb terminal as this is an obscure use case.