Integrated terminal makes characters after the line wrap invisible (when uzing `fzf`)

Does this issue occur when all extensions are disabled?: Yes/No

- VS Code Version: `1.132.0 (user setup)` (commit `df53daabb`)
- OS Version: Windows 11 Pro (10.0.26200)
- PowerShell Version: 7.6.4
- Windows Terminal: 1.23.13503.0

Since a long time I have an issue where characters after a line break inside an integrated PS terminal are hidden.

Steps to Reproduce:

1. Open a VS Code empty window
2. Open an integrated terminal instance
3. Start typing in the command line until the carriage wraps back to a new line
* Now the characters show as expected
4. Use `fzf` to find a history command: hit `[CTRL] + [R]` choose a command and run it or cancel it
5. Now again type in the command line until it must wrap to a new line
* In this new line the characters are now all invisible