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Toggling the new 1.3 Terminal works well when bound to it's default shortcut ctrl+but when changed to alt+ it will only toggle the terminal if it is not the focus. If the terminal is the focus it will only type the backtick/grave. This happens with the default cmd.exe terminal and with a powershell.exe terminal.
I did not try any shortcuts other than alt+so I can't speak to the extent of the issue but using alt+ worked with the 1.2 integrated terminal.