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Run in terminal: Handle dynamically switching between a background/watch terminal and a regular one #253263

@Tyriar

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@Tyriar

The agent can sometimes launch watch tasks and hang indefinitely, or at least until the command is interrupted:

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Ideally I think we would handle this case and "downgrade" it to the background terminal concept in Copilot, then create a new terminal for that session as needed.

Related: https://github.com/microsoft/vscode-copilot/issues/16430


This issue is being used to track generic problems with background terminals. We plan on having a holistic look at how background terminals work soon.

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chat-terminalThe run in terminal tool in chatfeature-requestRequest for new features or functionality

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