neovim not working properly using devcontainer exec

I am trying to rebuild the vscode remote containers feature for nvim and run into the following issue:

- nvim does not refresh the view correctly when running it using the devcontainer cli as follows: `devcontainer exec --workspace-folder . zsh -c "D=\$(pwd) && cd ~/dotfiles && devbox run nvim \$D"`
- using docker exec directly works though: `docker exec --user vscode -it reverent_neumann zsh -c "D=\$(pwd) && cd ~/dotfiles && devbox run nvim $D"`

Has someone an idea why this might happen?
I read about the $TERM variable which might cause this weird behavior.

Here is a screenshot that visualizes the issue. I use wezterm as terminal.


This is how it should look like:


Possibly related: https://github.com/loft-sh/devpod/issues/1187