I've used Visual Studio Code for some time, and I have never experienced this before, but suddenly there is a space between every letter in my integrated terminal, and the cursor appears one line above the writing position. This screenshot should clarify:
I've tried to change my terminal settings, and after changing an arbitrary terminal setting it immediately goes back to normal. But when I create a new terminal it's formatted wrongly, and I have to change a terminal setting to fix it. Do you know what's going on?
According to a GitHub issue, it looks like this is a known bug and is temporarily resolved by resizing the dimensions of the integrated terminal window.