I haven't checked the code who renders this part, but I'd believe this is only a visual bug, aside from maybe creating rickroll/phishing links.

For what I could skim from the visual representation, the terminal tab popup's "Shell Integration" section renders the command text by wrapping it with backticks:

`echo like this;`

However, it is possible to use backticks in a valid command, which breaks this wrapping

apt install --only-upgrade `grep 'dev' ./apt-dependencies.lock`

(the code doesn't matter, using backticks matters)

Since the command has a backtick, this breaks the wrapping:

`apt install --only-upgrade `grep 'dev' ./apt-dependencies.lock``

Does this issue occur when all extensions are disabled?: Will test later as it's a remote machine right now.

• VS Code Version: 1.105.1 (user setup)
• OS Version: Windows_NT x64 10.0.19045

Steps to Reproduce:

1. Run a long running command with backticks (```) from terminal
2. Hover over the terminal icon in the Terminal View.

3. The text is not escaped, which breaks the backtick.

P.S: I might be able to make a PR in a few days if the issue really happens to be simple.
Changing the wrapping to a <pre> could fix it...
and then escaping the < and > with &lt; and &gt; to make sure the command can't break by having html in the command text...
I'm open to comments!