Fallback to terminal default location when no target

This was caused in #127178 and I made sure the bug that originally fixed remains
fixed.

Fixes #127515
Fixes #127509

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

@@ -599,7 +599,7 @@ export class TerminalService implements ITerminalService {
 			await this._localTerminalsInitPromise;
 		}
 		if (this._terminalGroupService.groups.length === 0 && this.isProcessSupportRegistered) {
-			this.createTerminal();
+			this.createTerminal({ target: TerminalLocation.TerminalView });
 		}
 	}
 
@@ -1054,7 +1054,8 @@ export class TerminalService implements ITerminalService {
 		this._evaluateLocalCwd(shellLaunchConfig);
 
 		let instance: ITerminalInstance;
-		if (options?.target === TerminalLocation.Editor) {
+		const target = options?.target || this.configHelper.config.defaultLocation;
+		if (target === TerminalLocation.Editor) {
 			instance = this.createInstance(shellLaunchConfig);
 			instance.target = TerminalLocation.Editor;
 			this._terminalEditorService.openEditor(instance);

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

@@ -17,7 +17,7 @@ import { ActionBar } from 'vs/base/browser/ui/actionbar/actionbar';
 import { MenuItemAction } from 'vs/platform/actions/common/actions';
 import { MenuEntryActionViewItem } from 'vs/platform/actions/browser/menuEntryActionViewItem';
 import { IS_SPLIT_TERMINAL_CONTEXT_KEY, KEYBINDING_CONTEXT_TERMINAL_TABS_SINGULAR_SELECTION, TerminalCommandId } from 'vs/workbench/contrib/terminal/common/terminal';
-import { TerminalSettingId } from 'vs/platform/terminal/common/terminal';
+import { TerminalLocation, TerminalSettingId } from 'vs/platform/terminal/common/terminal';
 import { Codicon } from 'vs/base/common/codicons';
 import { Action } from 'vs/base/common/actions';
 import { MarkdownString } from 'vs/base/common/htmlContent';
@@ -117,7 +117,7 @@ export class TerminalTabList extends WorkbenchList<ITerminalInstance> {
 		this.onMouseDblClick(async e => {
 			const focus = this.getFocus();
 			if (focus.length === 0) {
-				const instance = this._terminalService.createTerminal();
+				const instance = this._terminalService.createTerminal({ target: TerminalLocation.TerminalView });
 				this._terminalGroupService.setActiveInstance(instance);
 				await instance.focusWhenReady();
 			}