Transparent cursor on VS Code terminal - visual-studio-code

Default cursor mode on vscode terminal hides text underneath.
I want to see the text when hovering over it with cursor on terminal just like it does on the main section when writing code. When I write some code on the main section (not on terminal) the cursor blinks and it shows text underneath too. This is what I want.
I enabled cursor blinking on terminal and it shows text momentarily when it blinks, but the text gets hidden by cursor blinking again.
The code I tried (settings.json):
"terminal.integrated.cursorBlinking": true,
"workbench.colorCustomizations": {
"terminalCursor.background": "#fff", //white background color
"terminalCursor.foreground": "#ffffff00" //transparent effect
}
This code makes the cursor not override the text underneath when it blinks, but the block cursor effect is gone and it makes only text white.

You have made the terminal cursor invisible by setting the foreground opacity to 0 (the last 2 digits of "#ffffff00" ),
Set it to something like 80 ("#ffffff80") so it's semi-transparent.
Hope it helps.

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Edit: Just want to clarify as well, I am using the Kitty terminal.

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