Thanks for confirming the Settings fix. The flood-of-output hang is a different bug, and the most useful next step is another sample taken while it's actually happening. The first one was just the shell lookup at startup, so it didn't tell us anything about this case.
Could you do this:
1. In iTerm2, run something that reliably hangs the UI. find ~/Documents is a great repro since you can reproduce it on demand.
2. Switch to Terminal.app while iTerm2 is still beachballing and run:
sample iTerm2 10 -file ~/Desktop/iterm2-find-hang.txt
2. (10 seconds this time, since the hang is longer.)
A couple of things to try in parallel that may either fix it or narrow it down:
- Try a default profile. Create a new profile (Settings > Profiles > +), leave everything at defaults, and open a session with it. If find ~/Documents runs cleanly there, the cause is something configured on your existing profile — most likely Triggers, Smart Selection rules, or Semantic History. If you've added regex Triggers, those are evaluated against every line of output and a bad regex can absolutely cause this.
- Try toggling the GPU renderer. Settings > Advanced > search for "GPU". Try flipping "Disable the GPU renderer" and reopen the window. macOS 26 changed Metal/CALayer behavior in ways that have caused output-volume regressions before.
- The TCC permission prompt is a real clue. When macOS asks for Documents access mid-find, the syscall blocks until you answer. If iTerm2 is touching paths it sees in output (which it normally only does on click for Semantic History), that would explain everything. The sample will show whether that's what's happening.