diff --git a/src/vs/platform/terminal/common/terminal.ts b/src/vs/platform/terminal/common/terminal.ts
index 54efdbe2c13..1b312d2aa25 100644
--- a/src/vs/platform/terminal/common/terminal.ts
+++ b/src/vs/platform/terminal/common/terminal.ts
@@ -189,7 +189,7 @@ export interface IShellLaunchConfig {
 	/**
 	 * Whether an extension is controlling the terminal via a `vscode.Pseudoterminal`.
 	 */
-	isExtensionTerminal?: boolean;
+	isExtensionCustomPtyTerminal?: boolean;
 
 	/**
 	 * A UUID generated by the extension host process for terminals created on the extension host process.
diff --git a/src/vs/workbench/api/browser/mainThreadTerminalService.ts b/src/vs/workbench/api/browser/mainThreadTerminalService.ts
index 77b5c4050f6..921d5d41754 100644
--- a/src/vs/workbench/api/browser/mainThreadTerminalService.ts
+++ b/src/vs/workbench/api/browser/mainThreadTerminalService.ts
@@ -127,7 +127,7 @@ export class MainThreadTerminalService implements MainThreadTerminalServiceShape
 			env: launchConfig.env,
 			strictEnv: launchConfig.strictEnv,
 			hideFromUser: launchConfig.hideFromUser,
-			isExtensionTerminal: launchConfig.isExtensionTerminal,
+			isExtensionCustomPtyTerminal: launchConfig.isExtensionCustomPtyTerminal,
 			extHostTerminalId: extHostTerminalId,
 			isFeatureTerminal: launchConfig.isFeatureTerminal,
 			isExtensionOwnedTerminal: launchConfig.isExtensionOwnedTerminal
diff --git a/src/vs/workbench/api/common/extHost.protocol.ts b/src/vs/workbench/api/common/extHost.protocol.ts
index d36e781093c..004a317bd24 100644
--- a/src/vs/workbench/api/common/extHost.protocol.ts
+++ b/src/vs/workbench/api/common/extHost.protocol.ts
@@ -457,7 +457,7 @@ export interface TerminalLaunchConfig {
 	waitOnExit?: boolean;
 	strictEnv?: boolean;
 	hideFromUser?: boolean;
-	isExtensionTerminal?: boolean;
+	isExtensionCustomPtyTerminal?: boolean;
 	isFeatureTerminal?: boolean;
 	isExtensionOwnedTerminal?: boolean;
 }
diff --git a/src/vs/workbench/api/common/extHostTerminalService.ts b/src/vs/workbench/api/common/extHostTerminalService.ts
index f04d05e483c..714077d7113 100644
--- a/src/vs/workbench/api/common/extHostTerminalService.ts
+++ b/src/vs/workbench/api/common/extHostTerminalService.ts
@@ -133,7 +133,7 @@ export class ExtHostTerminal {
 		if (typeof this._id !== 'string') {
 			throw new Error('Terminal has already been created');
 		}
-		await this._proxy.$createTerminal(this._id, { name: this._name, isExtensionTerminal: true });
+		await this._proxy.$createTerminal(this._id, { name: this._name, isExtensionCustomPtyTerminal: true });
 		// At this point, the id has been set via `$acceptTerminalOpened`
 		if (typeof this._id === 'string') {
 			throw new Error('Terminal creation failed');
diff --git a/src/vs/workbench/contrib/tasks/browser/terminalTaskSystem.ts b/src/vs/workbench/contrib/tasks/browser/terminalTaskSystem.ts
index 06d04bc1f18..77ac8bcc030 100644
--- a/src/vs/workbench/contrib/tasks/browser/terminalTaskSystem.ts
+++ b/src/vs/workbench/contrib/tasks/browser/terminalTaskSystem.ts
@@ -1155,7 +1155,7 @@ export class TerminalTaskSystem implements ITaskSystem {
 
 		if (task.command.runtime === RuntimeType.CustomExecution) {
 			this.currentTask.shellLaunchConfig = launchConfigs = {
-				isExtensionTerminal: true,
+				isExtensionCustomPtyTerminal: true,
 				waitOnExit,
 				name: this.createTerminalName(task),
 				initialText: task.command.presentation && task.command.presentation.echo ? `\x1b[1m> Executing task: ${task._label} <\x1b[0m\n` : undefined,
diff --git a/src/vs/workbench/contrib/terminal/browser/terminalInstance.ts b/src/vs/workbench/contrib/terminal/browser/terminalInstance.ts
index ab483ff20ee..f58ea5fd9f7 100644
--- a/src/vs/workbench/contrib/terminal/browser/terminalInstance.ts
+++ b/src/vs/workbench/contrib/terminal/browser/terminalInstance.ts
@@ -1591,7 +1591,7 @@ export class TerminalInstance extends Disposable implements ITerminalInstance {
 
 		// Recreate the process if the terminal has not yet been interacted with and it's not a
 		// special terminal (eg. task, extension terminal)
-		if (info.requiresAction && !this._processManager.hasWrittenData && !this._shellLaunchConfig.isFeatureTerminal && !this._shellLaunchConfig.isExtensionTerminal && !this._shellLaunchConfig.isExtensionOwnedTerminal && !this._shellLaunchConfig.attachPersistentProcess) {
+		if (info.requiresAction && !this._processManager.hasWrittenData && !this._shellLaunchConfig.isFeatureTerminal && !this._shellLaunchConfig.isExtensionCustomPtyTerminal && !this._shellLaunchConfig.isExtensionOwnedTerminal && !this._shellLaunchConfig.attachPersistentProcess) {
 			this.relaunch();
 			return;
 		}
diff --git a/src/vs/workbench/contrib/terminal/browser/terminalProcessExtHostProxy.ts b/src/vs/workbench/contrib/terminal/browser/terminalProcessExtHostProxy.ts
index 892b39634a3..c9526c816df 100644
--- a/src/vs/workbench/contrib/terminal/browser/terminalProcessExtHostProxy.ts
+++ b/src/vs/workbench/contrib/terminal/browser/terminalProcessExtHostProxy.ts
@@ -101,7 +101,7 @@ export class TerminalProcessExtHostProxy extends Disposable implements ITerminal
 	}
 
 	public async start(): Promise<ITerminalLaunchError | undefined> {
-		if (!this._shellLaunchConfig.isExtensionTerminal) {
+		if (!this._shellLaunchConfig.isExtensionCustomPtyTerminal) {
 			throw new Error('Attempt to start an ext host process that is not an extension terminal');
 		}
 		return this._terminalService.requestStartExtensionTerminal(this, this._cols, this._rows);
diff --git a/src/vs/workbench/contrib/terminal/browser/terminalProcessManager.ts b/src/vs/workbench/contrib/terminal/browser/terminalProcessManager.ts
index dc901c68d5a..d14af111d62 100644
--- a/src/vs/workbench/contrib/terminal/browser/terminalProcessManager.ts
+++ b/src/vs/workbench/contrib/terminal/browser/terminalProcessManager.ts
@@ -149,7 +149,7 @@ export class TerminalProcessManager extends Disposable implements ITerminalProce
 		isScreenReaderModeEnabled: boolean
 	): Promise<ITerminalLaunchError | undefined> {
 		shellLaunchConfig.flowControl = this._configHelper.config.flowControl;
-		if (shellLaunchConfig.isExtensionTerminal) {
+		if (shellLaunchConfig.isExtensionCustomPtyTerminal) {
 			// Flow control is not supported for extension terminals
 			shellLaunchConfig.flowControl = false;
 			this._processType = ProcessType.ExtensionTerminal;