Merge pull request #77896 from microsoft/tyriar/77415

Update terminal dropdown after hidden tabs are removed

src/vs/workbench/contrib/terminal/browser/terminalActions.ts

@@ -749,6 +749,7 @@ export class SwitchTerminalActionViewItem extends SelectActionViewItem {
 		this._register(terminalService.onInstancesChanged(this._updateItems, this));
 		this._register(terminalService.onActiveTabChanged(this._updateItems, this));
 		this._register(terminalService.onInstanceTitleChanged(this._updateItems, this));
+		this._register(terminalService.onTabDisposed(this._updateItems, this));
 		this._register(attachSelectBoxStyler(this.selectBox, themeService));
 	}