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What does this PR do?

fixes terminal hanging for 5-10 seconds when user types exit or Ctrl+D. Previously, the terminal would become unresponsive and eventually respawn a new terminal.

2026-01-20.02-33-17.mp4

How did you verify your code works?

  1. Opened terminal with Ctrl+
  2. Typed exit → terminal tab closes immediately and pane toggles closed (no hang)
  3. Tested Ctrl+D → same immediate close behavior
  4. With multiple terminals: closed one → others remain, pane stays open
  5. Closed last terminal → pane closes automatically
  6. Pressed Ctrl+ again → pane opens, new terminal auto-creates as expected

its very annoying to have this issue :)

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Thanks for your contribution!

This PR doesn't have a linked issue. All PRs must reference an existing issue.

Please:

  1. Open an issue describing the bug/feature (if one doesn't exist)
  2. Add Fixes #<number> or Closes #<number> to this PR description

See CONTRIBUTING.md for details.

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The following comment was made by an LLM, it may be inaccurate:

No duplicate PRs found

@ProdigyRahul
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fixes #9507 #6004

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sdk.event.on("pty.exited", (event) => {
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listens for when a terminal process exits and cleans up ui :)

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