Enable or disable VS Code Integrated Terminal Tabs?

Is it possible to get tabs instead of the select list when using multiple terminals from the "integrated terminal" window?

Terminal "tabs" appear to be coming to v1.56. See Terminal Tabs release notes. They are vertical tabs - always visible, if you want, in a resizable view to the left or right. Not like traditional tabs across the top like a browser though.

Tabs in the terminal [are] available as a preview feature and can be enabled with the following setting:

"terminal.integrated.tabs.enabled": true 

The tabs view is a split pane to the right of two split terminals. It contains icons and labels for each terminal instance.

When enabled, the new tabs view will only show by default when there is at least 2 terminals.

We've tried to mostly align how the new tabs behave with how the explorer works, here are some of the other behaviors:

• Double clicking the empty space will create a new terminal.
• Double clicking the sash will toggle the tabs view width between the "ideal" size which displays all the titles without truncating and a narrow view that shows only the icons.
• The tabs can be moved to the left side using the terminal.integrated.tabs.location setting.
• Various other configuration settings available under terminal.integrated.tabs.

Terminal Statuses

Along with tabs, we have introduced the concept of statuses to the terminal. A terminal can have many statuses, each of which represents a state the terminal can be in temporarily, with the highest severity one being displayed next to the tab. Status icons appear to the right of the terminal title in the tabs view. On hover, details of the status and any associated actions are presented.

On a tab associated with a terminal that requires a relaunch, a yellow triangle with an exclamation mark is to the right of the terminal title.

For now, these states are supported:

• Relaunch needed: A warning icon status is used if extensions want to change a terminal's environment.
• Disconnected: A plug icon status is used when the terminal loses its connection with its process.
• Bell: A bell icon appears when the bell is enabled via the terminal.integrated.enableBell setting and the terminal bell triggers.

We plan to support task states soon so that task run status is available at a glance even without activating the tab.

And more at the link. From the Insiders Build:

NO EXTENSION REQUIRED, as docs say:

Ctrl+Shift+5

If enough space, you can press it multiple times. However, as always, extensions might be more sophisticated for the job.