I still saw a lot of flickering in VS Code (I simply use CC as a terminal in VS Code, without the plugin) as of 2 weeks ago. I think it's a combination of CC bugs + Electron(?) rendering the VS Code uses for terminal.

Moved on to Zed (native Rust rendering) 2 weeks ago -> nothing flickers.

Sadly, with Fable 5 cutoff, I am actively exploring CC alternatives. Pi/OMP.sh works great as an agent (definitely better than CC). GPT is seemingly not as good as Opus, but with better agent and better skills, it probaly won't matter anyway. GPT lets you use any agent on Pro subscription.