So I tried the fix here https://wiki.archlinux.org/title/Visual_Studio_Code#External_terminal in the Arch Wiki, but that didn't seem to work. I'm just using Konsole right now on Arch, and I put this line

"terminal.external.linuxExec": "konsole"

at the end of my settings.json file in my Java project. It's not giving any errors but it's greyed out and I still have to run files through my integrated bash shell.

edit: Forgot to give error: "Failed to launch debugger in terminal. Reason: spawn xterm ENOENT"