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

• VS Code Version: 1.82.2
• OS Version: Win10 22H2

Steps to Reproduce:

I'm using a Git Bash Terminal (https://gitforwindows.org/ 2.42.0.2 with default install options) inside VSCode and the git setting git config core.editor 'code --wait'.
When I run git add -p and then enter e it correctly opens the patch in the same VSCode window for editing and after closing progresses in the terminal to the next hunk.
Scrolling etc is still possible but it doesn't accept any input anymore.
Ctrl+C etc has no effect. The only way to exit this deadlock is to kill the terminal, but that also leaves the git index untouched.