I honestly don't know how anyone thinks terminal support in VoiceOver is acceptable--it's virtually unusable. It's so bad that I used to fire up a Windows VM just for a functioning terminal, and while I was at it, I'd browse the web and use Notepad++ there, because Windows accessibility is just better (I used NVDA). But then I discovered Fenrir, figured out that it worked with Vim (NVDA doesn't), shut down the VM, and never looked back. Today, I use Wezterm, which VoiceOver doesn't read at all. In my case, that's good, because the only thing I want talking in the terminal is my terminal screen reader (I started writing my own, and it's my daily driver).
To be fair, reading the terminal is a completely different beast from reading a GUI. In addition to building a static view of the screen for review, you have to handle dynamic updates (auto read). Cursor movement tracking, figuring out when to read what, when not to read (an f just appeared on my screen, but I just typed the letter f; if key echo is turned off, I don't want to hear "f"). If a line was just added, it should be read, but if my cursor was moved to a different line, I want to hear the line it moved to, but not if that line was just read because it just appeared. All sorts of rules you sort of discover as you go. But the one thing you definitely don't want is for any new change to interrupt what was already being read, and that's exactly what VoiceOver does.