I actually think the VSC terminal is one of the few saving graces it has. Maybe not so much on *nix. It works well enough on Mac, but it really shines on Windows where you’ll have a much easier time running powershell, GitShell and WSL terminals within VSC than outside of it. It also has really good integration with the various Azure CLI tools.
I don’t think VSC is a very good IDE though. I have no idea why a Vim user would use it instead of upgrading to Neovim, and obviously doom emacs is the best choice but I do think the terminal is actually pretty good in VSC. At least on Windows.