diff --git a/extensions/vscode-api-tests/src/singlefolder-tests/terminal.test.ts b/extensions/vscode-api-tests/src/singlefolder-tests/terminal.test.ts
index d05b8f61d57..e5b7a74623f 100644
--- a/extensions/vscode-api-tests/src/singlefolder-tests/terminal.test.ts
+++ b/extensions/vscode-api-tests/src/singlefolder-tests/terminal.test.ts
@@ -23,7 +23,7 @@ import { assertNoRpc } from '../utils';
 		// Disable exit alerts as tests may trigger then and we're not testing the notifications
 		await config.update('showExitAlert', false, ConfigurationTarget.Global);
 		// Canvas may cause problems when running in a container
-		await config.update('rendererType', 'dom', ConfigurationTarget.Global);
+		await config.update('gpuAcceleration', 'off', ConfigurationTarget.Global);
 		// Disable env var relaunch for tests to prevent terminals relaunching themselves
 		await config.update('environmentChangesRelaunch', false, ConfigurationTarget.Global);
 	});
@@ -633,8 +633,9 @@ import { assertNoRpc } from '../utils';
 			});
 		});
 
-		suite('environmentVariableCollection', () => {
-			test.skip('should have collection variables apply to terminals immediately after setting', (done) => {
+		// https://github.com/microsoft/vscode/issues/119826
+		suite.skip('environmentVariableCollection', () => {
+			test('should have collection variables apply to terminals immediately after setting', (done) => {
 				// Text to match on before passing the test
 				const expectedText = [
 					'~a2~',