This is occurring for me too, here are screenshots comparing the output window to the terminal window, note the terminal version is blurry. the images are not inline as github does some scaling on image:

Clear Output: https://user-images.githubusercontent.com/50384876/69197798-a3cf0c80-0b86-11ea-8e3d-a80bebfcf1bb.png

Blurry Terminal: https://user-images.githubusercontent.com/50384876/69197799-a7629380-0b86-11ea-9a5c-3ed0228f87d3.png

Additional terminal settings:
"terminal.integrated.scrollback": 10000,
"terminal.integrated.fontFamily": "Courier New",
"terminal.integrated.fontSize": 16,
"terminal.external.linuxExec": "gnome-terminal",
"terminal.explorerKind": "external",

Edit: Oddly it seems to get blurrier to the middle of the terminal line, I had a colleague double check in-case my eyes were going bad:
https://user-images.githubusercontent.com/50384876/69198455-daa62200-0b88-11ea-924c-89b0aa676473.png

Terminal is sometimes blurry, even when window.zoomLevel is 0 #85154

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