From @bfsmith on August 9, 2016 20:29

• VSCode Version: 1.4
• OS Version: OSX 10.11.4

Steps to Reproduce:

1. Open Integrated Terminal
2. Use Option/Alt+Left Arrow or Option+Right Arrow

Expected: Cursor moves forward and back words.
Actual: Prints character codes to the terminal line (;3D;3C) for Option+Left, Option+Right

This works as expected in VSCode 1.3.1.

Copied from original issue: microsoft/vscode#10365