Terminal
Files can open the folder you are browsing in a terminal, so you can run commands without navigating there again by hand.
Opening a folder in the terminal
Press Ctrl + ` to open the current folder in a terminal. To open it with administrator privileges, press Ctrl + Shift + `. Both actions are also available from the Command Palette, and you can assign them different shortcuts from the Actions page in Settings.
If you have folders selected, those folders are opened instead of the current one.
Which terminal is used
Files follows the default terminal application set in Windows. When Windows Terminal is your default, folders open in Windows Terminal and each selected folder opens in its own tab. Otherwise, the folder opens in Command Prompt.