Do you have screenshots? I am not seeing anything wrong in Chromium 135.0.7049.52.

Do you have any settings that affect the terminal?

If you launch a blank Codespaces project using the same browser, do you get the same issue?

I have actually attached a screenshot, I'll try it again:

No no settings and what do you mean by a blank codespace project? if no project folder is selected like here?

Thank you! Interesting. Does disabling GPU acceleration change anything? (You can find it in the settings, search for "terminal").

what do you mean by a blank codespace project

I mean going here: https://github.com/codespaces

Codespaces also uses VS Code web, so if it reproduces there then we know it is a problem with VS Code itself rather than code-server, so it is a helpful debugging step.

yes the same at codespace

Thank you! Interesting. Does disabling GPU acceleration change anything? (You can find it in the settings, search for "terminal").

the artifacts disappeared immediately when i turned it off; it was on auto

Thank you for testing! Sounds like a bug with the GPU acceleration feature in VS Code, in that case. The closest issue I found upstream was microsoft/vscode#69665 but it is not a perfect match, the image just looked similar.

They recommend running the Show Terminal Texture Atlas command, so maybe you could run that and post it (either in that issue or a new one) and maybe they will have an idea of what has gone wrong (be sure to mention it is the web version of VS Code).

In the meantime, I will close this as an upstream issue since it will need to be fixed there!