Problem:
VS Code eats terminal keyboard shortcuts
Solution:
Go to VS Code - Manage - Settings (Ctrl + ,) - Features - Terminal - Integrated: commands To Skip Shell
Or, open VS Code - Manage - Settings - Search settings - search for:
terminal.integrated.commandsToSkipShell
or
open the default settings JSON (defaultSettings.json)
And modify the corresponding section as follows:
"terminal.integrated.commandsToSkipShell": [
"-workbench.action.quickOpen",
"-workbench.action.quickOpenView"
]