I use my terminal too, but VSCode runs fast enough for me. Maybe it's because I'm a mid 30s year old boomer now, but I figure if it's caching symbol tables then the lag isn't the end of the world.
But for whatever reason, I'd rather vimdiff when I have to resolve conflicts on rebase.
What I really hate about VSCode currently is how huge pylance is though, and how it's all up in my grill when I am trying to manually code.