Right, so those extra Violations appear to be something specific to VSCode’s terminal, and are not related to PlatformIO… as I was able to get them to pop up occasionally on my Windows install, and PIO is recognised properly here. Caveat: I’m running PIO 4.1.1-b7, so it could be marginally different. VSCode version and extension version are the same though.
The xterm.js related error popped up for me when I clicked the PIO Terminal icon… and not every time, so it’s intermittent as well.
Since you’ve already played with the platformio-ide.updateTerminalPathConfiguration and platformio-ide.updateTerminalPathConfiguration values… and no specific errors are coming up… I’m not sure what’s going on here. I can’t remember how to check if the python virtualenv is working properly, that could be one more thing to check… is there any difference between versions when you run python --version inside the PIO terminal and just at a ‘normal’ system terminal? Other than that, best bet may be to simply delete ~/.platformio whilst VSCode is closed, and let the PlatformIO extension re-install the PlatformIO core - maybe something just went wrong during the install.