They have in the release notes that Copy/Paste doesn't work yet, and that the terminal integration is pretty early....
"Please note, this is an early version of what we want to deliver. Currently VS Code only supports a single terminal and there still are missing features like copying and pasting with the keyboard. Windows 10 users may experience problems getting cmd.exe to work. If so, please try enabling the legacy terminal as described in #143"
Traditionally terminals auto-copy text to the clipboard or use a keyboard shortcut like `ctrl-shift-c`. To paste you typically use `shift-insert` or `ctrl-shift-v`.
Am I missing something?