Does this issue occur when all extensions are disabled?: Theoretically yes, but there aren't enough things in the bar by default

• VS Code Version: 1.78.1, 1.79.0-insider
• OS Version: Linux x64 5.19.0-40-generic

Steps to Reproduce:

1. Resize the VSCode window to be roughly 1128px wide, with the left pane open to minimum width and the terminal open (to any height, including full dock)
2. cd to any directory (mine was called frontend, but others should work)
3. Observe that the terminal close button clips out of the side of the window

Extensions enabled: Gitlens (as it adds an item to the terminal pane) and Rust-analyzer (to generate two problems, to pad out the pane header)

Shell: Xonsh