Shell integration with Agentic chat not working for at least me

Problem

I'm trying to use shell integration and seeing it just won't locate my shell integration. I seem to have all the settings enabled. Here is what happens when I debug it:

And here is my settings.json:

settings.json

{
    "hediet.vscode-drawio.resizeImages": null,
    "go.toolsManagement.autoUpdate": true,
    "gitlab.duoCodeSuggestions.enabled": true,
    "gitlab.debug": true,
    "workbench.colorTheme": "Default Light+",
    "gitlab.duoAgentPlatform.connectionType": "websocket",
    "files.exclude": {
        "*.zoekt": true
    },
    "terminal.integrated.defaultProfile.osx": "bash (2)",
    "terminal.integrated.defaultProfile.linux": "zsh",
    "terminal.integrated.profiles.osx": {
        "bash": {
            "path": "bash",
            "args": [
                "-l"
            ],
            "icon": "terminal-bash"
        },
        "zsh": {
            "path": "zsh",
            "args": [
                "-l"
            ]
        },
        "fish": {
            "path": "fish",
            "args": [
                "-l"
            ]
        },
        "tmux": {
            "path": "tmux",
            "icon": "terminal-tmux"
        },
        "pwsh": {
            "path": "pwsh",
            "icon": "terminal-powershell"
        },
        "sh": {
            "path": "/bin/sh"
        }
    }
}