I have two 32" external monitors connected to my 17" laptop, so I use 3 screens: the laptop screen is usually for browser/slack/email, first external monitor is for Vscode code editor, second monitor is for tmux (watching a bunch of ML experiments on GPU servers).

I don't want to use different spaces on the same screen, to me it's like context switching, and I don't like that. I prefer to have everything open in front of me, so I just turn my head slightly to see what I need to see. It's like having a large work table where I can fit all my tools and materials.

Arguably if vscode allowed you to detach the terminal this would be less of an issue. But you can't, and it's part of the same screen, and making the terminal have a small horizontal section of the screen is not as good; terminal character wrapping for small vertical sections is not as good etc.

If you have never had your terminal highlight something that it detects (log line, compile error, stacktrace, test report, etc.) as a reference to a file/line/column and give you a clicky to bring that file to the front and focus it... I highly recommend you try it.

I'm not monitoring the terminal window with my peripheral vision, but when I am using the terminal I don't want to have to rearrange where my code appears.

I also have a third, vertical monitor, that typically has documentation (documentation is splendid when you can see lots of rows of text). Why that has to be "in another monitor" should be a reasonable corrollary from that.

I don’t know about terminals but having live reload on multiple monitors is a god send for frontend developer productivity. You’re experimenting most of the time.