Terminal title overlaps with action buttons when panel is moved to the side and tabs are collapsed

**Does this issue occur when all extensions are disabled?**:
Yes

**Environment:**
VS Code Version: 1.128.0 (user setup)
OS Version: Windows_NT x64 10.0.26100

**Steps to Reproduce:**

Move the terminal panel to the side (e.g., the right side).
Adjust the terminal tabs to the shortest state (showing only icons).
Run a process that generates a long terminal title (for example, using Claude Code or any CLI tool that sets a long dynamic title).
Observe the terminal title bar.

**Expected Behavior:**
The long terminal title should be truncated with an ellipsis (...) or properly padded to prevent it from overlapping with the terminal action buttons (split, kill, close, etc.) on the right.

**Actual Behavior:**
The title of the current terminal overlaps directly with the terminal control buttons, making both the text and the buttons hard to read and interact with.

**Screenshots:**