I think this UX has changed a time or three. Today, as you say, the output tab enables a view that contains both an output and a terminal sub-view. Makes sense right that the output tab includes output and something else!?!?

Anyway... I have no "reset location" that Justin George says hides the output sub-view. Or maybe they mean it shows it. IDK. Doesn't matter, that menu item is not there.

I find no way to fully hide the output sub-view. but... you can shrink it pretty small via the down arrow to the left of the sub-view title.