Looking at my ssh config, devpod injected a Host and that's it there's nothing extra in the container. Instead, there's a ProxyCommand that runs devpod, which probably ends up in a docker exec somewhere. That's why you're having trouble with newline and larger terminals, I used to as well because the terminal escape codes for resizing weren't getting through to the shell inside the container.

In the past, I had to resize the terminal once manually after execing in, but I think either docker or bash or something in the chain got an update in the past few years that fixed it to automatically work