VS Code Devcontainer CLI wrapper does not support user input in up and exec commands

• VSCode Version: Version: 1.94.0-insider (Universal)
• Local OS Version: macOS 14.6.1 (23G93)
• Remote OS Version: probably irrelevant (but I've tested with an Alpine 3.20 image)
• Remote Extension/Connection Type: Containers

Steps to Reproduce:

1. Set up a directory with a devcontainer configuration at $DIR. I used an empty directory aside from the following .devcontainer/devcontainer.json file:

   {
    "name": "Alpine",
    "image": "mcr.microsoft.com/devcontainers/base:alpine-3.20"
   }
   

2. Run devcontainer up --workspace-folder "$DIR" to set up the devcontainer
3. Run devcontainer exec --workspace-folder "$DIR" /bin/sh to open a shell
4. Enter any command in the shell.

With the devcontainer CLI installed through VS Code (Dev Containers: install devcontainer CLI), the up and exec commands do not react to any form of interactive input. In particular, the shell opened in step 3 is unusable because it doesn't react to any commands typed in, and instead just hangs. If the up step expects interactive input at any point, it will also just hang.

With the devcontainer CLI installed through npm install -g @devcontainers/cli, input is handled as expected.