Is there something similar to the Studio Output panel available in Visual Studio Code?

To conclude this discussion, I've summarized the solutions that have been suggested:

1. For Visual Studio Code (VSC) Users with IRIS 2020.1.1 or IRIS 2021.1.2: Users that have IRIS 2020.1.1 or IRIS 2021.1.2 and that are able to install external extensions, might find useful the Web Terminal extension for VSC. This extension enables to launch a web-based terminal directly from VSC. 
2. For VSC Users with IRIS 2023.2: As suggested by @John Murray in a previous response, users of IRIS 2023.2 can take advantage of the new "WebSocket Terminal" feature included in the latest version of the VSC extensions and they don’t need for additional workarounds.
3. For VSC Users with Docker-based IRIS: Those working with IRIS environments within Docker and using VSC can start a terminal session directly within the Docker environment, as suggested by @Evgeny Shvarov.  

Additionally, I've come across a few more solutions:

1. For VSC users with IRIS Versions Prior to 2023.2 working on their local machine: In this case it’s possible to set up a dedicated IRIS terminal within VSC:
   1. Open the settings.json file.
   2. Add the following code under "terminal.integrated.profiles.windows":

"IRIS Terminal": {
    "path": [
        "C:\\InterSystems\\IRISHealth\\bin\\irissession.exe"
    ],
    "args": ["IRISHEALTH"],
    "icon": "terminal-cmd"
}

Note: Select the right path of irissession.exe.

c. Navigate to: Terminal > New Terminal > Launch Profile… > IRIS Terminal.

2. For VSC Users Coding on IRIS based on a remote server using an SSH connection: For those who code on a remote server (e.g., a company server) accessible via SSH connection (e.g., using Putty) it is possible to use the Remote - SSH VSC extension to connect directly to the server. In order to do so:
   1. Install the Remote - SSH: Editing Configuration Files extension on VSC;
   2. Click on the “Remote Explorer” icon in the sidebar;
   3. Select “Open Configuration File” to open the “ssh_config” file.
   4. Insert the following code into the configuration file: 

Host my-putty-connection
    HostName < IP address or server name >
    User < username >
    IdentityFile < private key path on your local machine >
    Port < port >

1. 5. Save the file. After a few seconds the new connection should appear in the Remote Explorer panel;
   6. Click “Connect in New Window…”
   7. In the new window, navigato to: Terminal > New Terminal. You’re now connected to the remote machine and can use its IRIS terminal within VSC.