In the Appearance settings of the Windows terminal, there is a setting:

Automatically adjust lightness of indistinguishable text

Automatically brightens or darkens text to make it more visible. Even when enabled, this adjustment will only occur when a combination of foreground and background colors would result in poor contrast.

This setting is particularly user-friendly for individuals with mild visual impairments. It is hoped that this feature can be implemented in Visual Studio Code in the near future.