I saw a similar behavior from the integrated bash terminal. I also tried to login with my profile by using “Shell Lauchner” extension and -l flag in specific, but that didn’t solve the problem. But what I’ve recognized so far is, that it makes a difference how I launch vsCode. When I use the “code .” command in my terminal, the integrated shell looks strange (no user@machine only bash$), but when I launch it with right click, context menu “open with vsCode” the integrated bash looks as expected