Terminal prompt not working when opening DevContainer (OSX)

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I am trying out the Remote - Containers VSCode extension. I get a docker warning and a prompt message if I want to continue but I can't type anything into the terminal. The cursor looks like it's active but nothing happens when I type.

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So far I have tried:

  • Using iTerm.app instead of Terminal.app (in VSCode settings)
  • Disabled oh-my-zsh terminal plugin
  • Quit and start Visual Studio code
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I solved this by using generating ssh key in the devcontainer and adding it to github.