Sticky Scroll showing a maximum of one line

Prerequisites

• I have written a descriptive issue title.
• I have searched all open and closed issues to ensure it has not already been reported.
• I have read the troubleshooting guide.
• I am sure this issue is with the extension itself and does not reproduce in a standalone PowerShell instance.
• I have verified that I am using the latest version of Visual Studio Code and the PowerShell extension.
• If this is a security issue, I have read the security issue reporting guidance.

Summary

Sticky Scroll is limited to one line once the PowerShell extension's terminal is loaded. This is reproducable. Sticky Scroll is displaying multiple lines before the terminal has finished loading. This occurs in both 2025.3.0 and 2025.0.0 versions (and earlier, I don't remember it working before).
This is on a fresh install of VS Code and the extension, no settings have been changed.

PowerShell Version

Name                           Value
----                           -----
PSVersion                      5.1.26100.2161
PSEdition                      Desktop
PSCompatibleVersions           {1.0, 2.0, 3.0, 4.0...}
BuildVersion                   10.0.26100.2161
CLRVersion                     4.0.30319.42000
WSManStackVersion              3.0
PSRemotingProtocolVersion      2.3
SerializationVersion           1.1.0.1

Name             : Visual Studio Code Host
Version          : 2025.3.0
InstanceId       : 6c283390-824b-4ec7-ad77-279d279a380b
UI               : System.Management.Automation.Internal.Host.InternalHostUserInterface
CurrentCulture   : de-DE
CurrentUICulture : de-DE
PrivateData      : Microsoft.PowerShell.ConsoleHost+ConsoleColorProxy
DebuggerEnabled  : True
IsRunspacePushed : False
Runspace         : System.Management.Automation.Runspaces.LocalRunspace

Visual Studio Code Version

1.98.2
ddc367ed5c8936efe395cffeec279b04ffd7db78
x64

Extension Version

ms-vscode.powershell@2025.3.0

Steps to Reproduce

• start a fresh install of VS Code
• open a PowerShell file
• see Sticky Scroll display multiple lines at the top
• install PowerShell extension
• see Sticky Scroll collapse to one line only after the terminal has finished loading

Visuals

Logs

No response

Reproduce the issue using the listed VS Code, PowerShell, and extension versions, comparing Sticky Scroll before and after the extension terminal finishes loading. Start by tracing the extension's terminal initialization behavior and its effect on the editor, since no source file or test is named. Done means Sticky Scroll continues displaying multiple lines after the terminal loads.