Environment data

• VS Code version: 1.58.0
• Jupyter Extension version (available under the Extensions sidebar): v2021.8.1013163132
• Python Extension version (available under the Extensions sidebar): v2021.6.944021595
• OS (Windows | Mac | Linux distro) and version: Windows 7 x64 Sp1
• Python and/or Anaconda version: 3.8.6
• Type of virtual environment used (N/A | venv | virtualenv | conda | ...): N/A
• Jupyter server running: Local

Expected behaviour

Screen shot:

Actual behaviour

Screen shot:

Steps to reproduce:

[NOTE: Self-contained, minimal reproducing code samples are extremely helpful and will expedite addressing your issue]

1. CtrlShiftP create new blank notebook.
2. Ctrl` start a new terminal
3. Click ^ to max size the terminal
4. UI Overlap