Here’s an example of how to make another terminal the default for VSCode, in this example I’ve downloaded iTerm2 and copied iTerm2 to Applications.
- Code (Menu) > Preferences > User Settings
- Edit settings.json
"terminal.external.osxExec": "iTerm.app"
and"terminal.explorerKind": "external"
- Open in Terminal
- iTerm is now default terminal launched from VSCode