Initially VS Code showed a drop down list for all the terminals available but now it is just showing plus sign and new terminals get added to right pane. How do I enable like this: (plus sign and the drop down view)
In my current VS Code it got changed to:
I don't know if its due to update or I messed up some settings.
I had the same issue. (on a mac) go to code > preferences > Settings. You'll need to find the setting under terminal or just search 'terminal' in the search bar. you'll be looking for the following setting and just make sure it is unchecked. 
If you don't want to fiddle with the settings, a quick fix is to open 2 terminals, then right-click on the space below the list of terminals, and click "hide tabs".
