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

• VS Code Version: 1.73.0 (8fa188b)
• OS Version: Browser: Mozilla/5.0 (iPad; CPU OS 15_7 like Mac OS X) AppleWebKit/605.1.15 (KHTML, like Gecko) CriOS/107.0.5304.66 Mobile/15E148 Safari/604.1

Steps to Reproduce:

1. Open iPad (iOS 15.7)
2. Run Chrome or Safari
3. Access Codespace
4. Tap on terminal and start typing

We had received many reports indicating having terminal issues (no response to typing) on Codespaces, and it seemed only Safari users were affected. Though I could not reproduce this issue on my macOS (12.6) running Safari (Version 16.0), I was able to reliably reproduce this issue on an iPad running both Safari and Chrome.

Concretely, when users start typing in the terminal, the terminal has no visual feedback as if it wouldn't take any user input. However, the terminal was still taking user input, and one could still execute commands (just all the texts typed in were "hidden")

Here is a recording of the issue:

I was typing commands such as code hello.py and python3, and the command would run, just no visual response on the terminal.