When the terminal is extended to full screen in the editor view, the prompt can disappear below screen. The issue gets resolved when the terminal is minimized again.
Steps to Reproduce
Extend the terminal to full screen using maximize panel size.
Keep pressing enter until the terminal prompt is at the bottom edge of the screen.
Keep pressing enter and the prompt disappear below screen with no way to scroll down.
If you could share any customizations from your VSCode settings (Cmd + Shift + P > Open User Settings (JSON)), that would help us get to the bottom of this!
I tried with removing all settings and the issue still persists. Note the issue seems to be cursor specific since I checked standard vscode on the same laptop and it doesn’t seem to have this issue.
Was finally able to reproduce. The key is having the Cursor-specific Title Bar turned off (Cursor Settings → General → Layout → Title Bar). That’s what was different between your setup and mine.
With the title bar hidden, maximizing the panel and filling the terminal pushes the prompt below the bottom edge of the screen with no way to scroll down. Turning the title bar back on makes it behave normally again.
I’ve filed this internally! In the meantime, the workaround is to either re-enable the title bar, or un-maximize the panel to bring the prompt back into view.