It's not a feature of the VSCode terminal, but of the PowerShell.

https://learn.microsoft.com/en-us/powershell/module/psreadline/set-psreadlineoption?view=powershell-7.5#-predictionsource

You can run Set-PSReadLineOption -PredictionSource None on the PowerShell and predictive IntelliSense would turn off.

_{BTW this question is off topic. You should've visit StackExchange Super User.}