Is there an existing issue for this bug?

• I have searched the existing issues

Required Troubleshooting Steps

• I have followed these troubleshooting steps
• I have tried both values of the remote.SSH.useLocalServer setting (more info here)

Connect Locally

It connects successfully

->

Re-opening #8357 as the bug is still the same as of today.

Expected Behavior

The integrated terminal should not show.

Steps To Reproduce

1. Set setting remote.SSH.showLoginTerminal to false
2. Set setting workbench.startupEditor to newUntitledFile
3. Open remote ssh connection to a server
4. The integrated terminal gets opened even though it is not supposed to
   Note that it does not happen when opening a regular (non-remote) vscode window.

Remote-SSH Log

No need for logs

Anything else?

No response