I don't want to stoke the flames again, but even VS Code doesn't force you to log-in. Microsoft knows that blocking you from using basic functionality of a free app is a bad user experience. It's good that you're letting people opt-in to a more private experience, but that was hardly the largest problem I could see the last time this was brought up.
From where I'm standing, it looks like you're trying to build a terminal for a pretty small audience; people who own a Mac, but don't want to use iTerm2 or the builtin terminal. That leaves a markedly tiny audience of people who don't use custom shells/incompatible configurations, want to log-in to your application and don't care about any of iTerm2's extra features. It's a bit of a pipe-dream to be honest, and you're not helping yourself by delaying your versions for other platforms.
My intention is not to discourage you, but I think this project needs a little tough love. You might be optimizing for the wrong users.