VSCode Terminal creates indent after using tab to auto complete commands

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I am using the VSCode terminal for most of my dev work and I am ssh'ed into a remote server but whenever I use the autocomplete hotkey (TAB) the terminal interface indents the text and treats the text field as if the line begins at a tabulated spot (basically I can't delete the tab character). I am unsure if this is a result of the VSCode Terminal settings or my zsh setup.

For example:

Terminal before using tab

Terminal after using tab

My PS1 is:

PS1='${txtpur}$(ps1_context)${bldgrn}%n${bldwht}@${bldylw}%m ${bldcyn}%1d${NEWLINE}${txtrst}'

The color variables are from https://github.com/jimeh/git-aware-prompt.

I have tried messing with PS1 as well as looking through the Terminal settings on VSCode but I am not finding anything that may pertain to this.

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