Just updated VSCode to 1.29.0 on macOS 10.12.6 and it looks like this option to move the terminal to the bottom of VSCode (and then back right) is no more. Is that on purpose? Did it move to a specific setting? I was using that feature quite a lot.
Here goes a screenshot:
EDIT: Can still move by context menu:
EDIT for v1.42 (January 2020 release):
Panel on the left
The panel can now be moved to the left side of the editor with the setting:
"workbench.panel.defaultLocation": "left"This removes the command View: Toggle Panel Position (
workbench.action.togglePanelPosition) in favor of the following new commands:View: Move Panel Left (
workbench.action.positionPanelLeft)View: Move Panel Right (
workbench.action.positionPanelRight)View: Move Panel To Bottom (
workbench.action.positionPanelBottom)
See https://github.com/microsoft/vscode-docs/blob/vnext/release-notes/v1_42.md#panel-on-the-left
[Previous answer - see above for later info:]
See release notes on panel position button.
Panel position button to context menu
In order to preserve horizontal space and reduce clutter, we removed the toggle Panel position button (Move to Right, Move to Bottom) from the Panel title area. The action is now available in the Panel title area context menu and also in View > Appearance > Toggle Panel Position main menu. Another reason for removing this button was that we believe users set their layout once and don't normally toggle back and forth.
There is also this setting to "permanently" change the panel location:
workbench.panel.defaultLocation
But to move it on the fly now you use the context menu.
Apparently people just weren't using it enough to warrant the screen space.
If you don't see the panel at the bottom,
View > Appearance > Toggle Panel Position
Now drag and drop the terminal icon from the sidebar (left or right side) to panel bar (bottom)