Shift+Enter line break in VS Code’s terminal

The \ (backslash) followed by Enter is the native shell method for line continuation in macOS (zsh/bash). In VS Code you can add a keybinding that mimics the backslash behavior automatically.

Open command palette (Cmd+Shift+P) and edit the “Open Keyboard Shortcuts (JSON)” file to include this array item:

{
    "key": "shift+enter",
    "command": "workbench.action.terminal.sendSequence",
    "args": { "text": "\\\r" }, // Sends a literal \ then a return
    "when": "terminalFocus"
}