Shell integration's automatic injection that was moved out of preview last release is now enabled by default. For supported shell setups (most bash/zsh/pwsh configurations), it should all just work without any changes and you should see command decorations:
Shell integration has the ability to get the exit codes of the commands run within the terminal. Using this information, decorations are added to the left of the line to indicate whether the command succeeded or failed. These decorations also show up in the overview ruler in the scroll bar, just like in the editor.
vscode release notes v1.70
vscode release notes v1.69