Create a new terminal session using environment variables defined in the .env file inside workspace/folder(s)
Visual Studio Code allows you to define environment variables inside the .env file which works perfectly when using the Run/Debug option. Developers expect the variables defined in the latter to be loaded into their terminal session seamlessly. Unfortunately, that's not happening and you have to define the variables that you declared in .env somewhere else in the settings.
Here comes the role of Terminal.env, it allows you to open a new terminal session loading the environment variables that you've defined in the .env file.
How it works
Simply open the Command Palette and type down Terminal.env and press enter...