Ctrl-R (bck-i-search) in terminal does not run at all after latest update

[ckampfe]

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

• VS Code/OS Version:

Version: 1.107.0
Commit: 618725e67565b290ba4da6fe2d29f8fa1d4e3622
Date: 2025-12-10T07:43:47.883Z (1 day ago)
Electron: 39.2.3
ElectronBuildId: 12895514
Chromium: 142.0.7444.175
Node.js: 22.21.1
V8: 14.2.231.21-electron.0
OS: Darwin arm64 24.6.0

• Shell: zsh

Steps to Reproduce:

1. Open terminal
2. Run a few commands (git status, echo "foo", etc.)
3. Hit Ctrl-r to attempt to run bck-i-search

Nothing happens. No errors, no output in terminal, no change in vscode UI, no observable response anywhere I can see.

My zsh config has not changed in months/years, previously ctrl-r to begin bck-i-search has always worked in the vscode terminal with no changes from me.

I tried disabling the latest terminal intellisense feature and this had no effect.