Integrated Terminal In Editor Area Requires Reload Window Every Time

I use terminal in editor area. That is, "terminal.integrated.defaultLocation": "editor"

Since a couple of months, I am observing that when the terminal is in focus, keyboard shortcuts that are meant for the workbench are sent to the terminal. It feels as though terminal is consuming all keyboard shortcuts.

For instance, if I use Ctrl + P (Goto a file), it is sent to the terminal instead.

A workaround I found is that, once I open the terminal in editor area, if I run the workbench command Developer: Reload Window (through the Ctrl + Shift + P), then everything is fine. All keyboard shortcuts work as expected.

Any permanent solution without having to run the Developer: Reload Window command every time I open a new Terminal?

I am in a similar position, I wonder if anyone has found a solution for this.

I hate that cursor forced me to update and now terminals are unusable in editor

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