iterm annoying history window

Question

I have recently changed my MAC and was setting my work environment from scratch. I have noticed that now I have a feature that I've never used before. When I press up arrow up a couple of times iterm basically chooses one of the previously used commands by itself and prompts the window with all the options I have used a specific command with. For instance I recently used ls with flags -lh -ls etc. I would like to get rid off this prompt as I cannot let's say press arrow up a couple of times to look for a different command I've previously used. Screenshot below for some clarification.

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