UI is often displaying a continuous stream of characters representing my mouse movements

### Describe the bug

Often on first load, I see a big stream of characters representing my mouse movements, rather than a functioning UI, in addition to the initial session character stream. I don't believe I'm able to prompt after this happens. Often fixes itself after reload. Also on reload it often is updated to the next copilot version, which makes me wonder if it's a byproduct of how copilot is loaded when the auto-update runs first.

Example output:
/ search . enter details . o open . c chat . tab next tab^[[<35;145;1M^[[<35;142;2M^[[<35;138;4M^[[<35;135;5M^[[<35;131;6M^[[<35;129;7M^[[<35;126;8M^[[<35;123;9M^[[<35;121;9M^[[<
35;117;10M^[[<35;114;11M^[[<35;112;12M^[[<35;109;12M^[[<35;106;13M^[[<35;102;13M^[[<35;100;14M^[[<35;97;14M^[[<35;95;14M^[[<35;93;14M^[[<35;93;15M^[[<35;92;15M^[[<35;91;15M^[[<35;
88;14M^[[<35;83;13M^[[<35;78;13M^[[<35;74;12M^[[<35;71;11M^[[<35;65;11M^[[<35;61;10M^[[<35;57;9M^[[<35;55;8M^[[<35;54;8M^[[<35;54;7M^[[<35;54;6M^[[<35;55;6M^[[<35;56;5M^[[<35;57;5
M^[[<35;59;5M^[[<35;61;5M^[[<35;63;5M^[[<35;66;4M^[[<35;69;4M^[[<35;74;4M^[[<35;79;5M^[[<35;83;5M^[[<35;86;5M^[[<35;91;6M^[[<35;96;6....

### Affected version

Now on 1.0.66-1, been happening for about a week

### Steps to reproduce the behavior

On a github, codespace, looking through VSCode , Agency 2026.6.28.1
VSCode Version: 1.126.0 (user setup)
Other VS Code details:
Electron: 42.2.0
ElectronBuildId: 14159160
Chromium: 148.0.7778.97
Node.js: 24.15.0
V8: 14.8.178.14-electron.0

### Expected behavior

Not this happening

### Additional context

bash

No source file or test is named. Start by reproducing the first-load failure in a GitHub Codespace while viewing through VS Code, comparing normal startup, reload, and the reported Copilot auto-update timing; done means mouse escape sequences no longer appear as terminal text and the UI remains usable.

Written by the indexing model from the issue text.