Does this issue occur when all extensions are disabled?:

This is an issue related to the IntelliSense information block and terminal display area. Without any extension almost all code completion is unavailable. So I guess I should answer Yes here.

• VS Code Version: 1.63.2
• OS Version: Windows 10 21H1

And I guess this configuration might also help:

• Terminal > Integrated: Gpu Acceleration: off

Steps to Reproduce:

1. Put the integrated terminal to the right.
2. Trigger function IntelliSense at a line long enough so that hint block should float on the right end.
3. You should get a wrong overlay at Z direction now. The hint block is hard to see.

I've tried Python and C++. Both reproduced. So this should be an issue with VS Code instead of language IntelliSense extensions.