Recommended settings

Visual Studio Code integrated terminal

Default settings

...

ANSI colors contrast issue

On some operating systems, VS Code terminal doesn't display shades of gray correctly. It's because Minimum Contrast Ratio property set that to 4.5 by default. If the PROMPT divider isn't gray, set terminal.integrated.minimumContrastRatio to 1 to fix this issue.

In your settings.json add the key:

"terminal.integrated.minimumContrastRatio": 1