I am using vscode built-in terminal, and when I use this script to create a container, I found the zsh-auto-suggestion is not working properly as the color of the suggestion is wrong:

• Expected:
  

• Actually:
  

Then I found it was caused by the env TERM was set to xterm.
So I remove the export TERM=xterm, then echo $TERM to find that it is xterm-256color originally.
I wonder why the env 'TERM=xterm' would be set and if there should be an option to disable it.