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

VS Code Version

1.110.0 (February 2026)

OS

macOS (Apple Silicon / ARM64) - 15.7.3

Steps to Reproduce

Bug 1: Caps Lock inserts symbols in integrated terminal

1. Configure Caps Lock as input source switcher (RU/EN) via System Settings → Keyboard → Input Sources
2. Open VS Code integrated terminal
3. Launch any CLI app (e.g. OpenCode)
4. Press Caps Lock to switch keyboard layout

Expected: Layout switches silently, no characters inserted
Actual: Strange symbols / empty box characters are inserted into the terminal input

Bug 2: Cmd+Q does not quit VS Code

1. Open VS Code 1.110
2. Press Cmd+Q

Expected: VS Code quits
Actual: VS Code does not quit or hangs in background

Additional Context

• Both bugs are not reproducible in VS Code 1.109 and 1.100 — confirmed by rollback testing
• Both bugs are not reproducible in VSCodium 1.110 (same codebase, without Microsoft-specific patches)
• Both bugs are not reproducible in iTerm2 running the same CLI apps
• This strongly suggests the regression is introduced by Microsoft-specific patches/telemetry layer in 1.110, not in the open-source Code-OSS base

Configuration

"terminal.integrated.gpuAcceleration": "off",
"terminal.integrated.setLocaleVariables": true,
"keyboard.dispatch": "keyCode"