Rookie issue with VSCode - doesnt react to any prompt

HI all! I’m just learning now to code so I’m basically clueless and you all need to bear with me :slight_smile:
I’ve been experiencing problems with Visual Studio Code: it doesn’t react correctly to any prompt.
I have a MAC updated to Catalina 10.15.7, downloaded VSC as per instructions (Running Visual Studio Code on macOS) and the result is still the same - the command palette doesn’t find any shell command and if I prompt manually nothing happens. I’m quite lost. See the screenshot attached…

Please help a very lost rookie? Thank you

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Hey, so to be clear, when you type things in the Terminal, nothing shows up?