Does this issue occur when all extensions are disabled?: Yes/No

• VS Code Version: 1.86.2 and 1.87.0
• OS Version: Ubuntu 20.02 on top of WSL2

This happened while preparing a patch for a bug in VSCode IDE plugin for the OCaml programming language.

The user environment of OCaml is pretty similar to Python in the sense that a user wants to open an interpreter window (called REPL) , run some codes on it, and watch the output.

A long-standing bug in VSCode OCaml plugin is that in some cases, after its interpreter terminal window is closed once, it cannot be reopened (ocamllabs/vscode-ocaml-platform#935).
It seems this issue is related to the observed fact that, even if a REPL terminal is closed by a user using Ctrl+D, Vscode.Window.onDidCloseTerminal is not being invoked for some reason.

Vscode.Window.onDidCloseTerminal is not invoked when the VSCode OCaml plugin is installed at a virtual machine of Ubuntu 20.02 in WSL2 & VSCode is remotely connected to the virtual machine.

Vscode.Window.onDidCloseTerminal is invoked when everything is running locally, specifically MacOS.

ocamllabs/vscode-ocaml-platform#1398 has a relevant patch & discussion as well.

Steps to Reproduce:

I can provide its reproduce, but this might be a bit lengthy.
I wonder whether this is a known issue & what is a typical solution for this.