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You can try opening a new terminal from the menu in the top left Terminal > New Terminal
Tried that the problem just randomly disapeared and then it appeared again and than disappeared. I could still program in the window but it looks like it is covered and when I select it i can copy it and paste it else where.
This behavior might be a consequence of Firefox. I have reported to Gitpod that the terminal does not work correctly for vscode in a browser and they confirmed. For example, CTRL+` is supposed to toggle the terminal focus but it does. I have experienced the same than you with terminal malfunctioning and nuances. If you just open a new terminal, that will not help. Sometimes, deleting the terminal (clicking in the trash can) and creating a new one, helps until next time.
I am a long time Firefox user and I hate this is happening.
