It isn't a bug exactly but the interactive window quickly gets impractical due to how much spacing there is.

In this example the text size of VS Code is even smaller than the terminal which is providing a similar functionality, but the screen space required is much bigger.

Realistically the interactive window will be side split or bottom split with a text editor, the bottom panel might be open, etc making the comparison worse.

It seems VS Code is leaving space between cells for "+ Code" "+ Markdown" buttons that are in the Jupyter Notebook editor and appear on hover. However for interactive windows these buttons never appear and it's just dead space.

(If Github resizes my image- window.zoomLevel is -1, the height of [ is 28px in the Command Prompt, in the VS Code output it's 23px, and in the VS Code cell it's 23px.