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Intent
Address #2607.
Approach
Plumb the new session mode arg through to the shell and kernel, then use it to determine whether we should format tracebacks.
There's some tension between VSCode and Positron notebook UIs here. VSCode notebooks do error formatting in the notebook-renderers extension, whereas Positron notebooks expect the runtime to do formatting via ANSI/OSC8 escape codes. We may need a way to configure the runtime to still do error formatting for Positron notebooks but not VSCode notebooks, but since we aren't enabling Positron notebooks yet I think this is okay to merge.
QA Notes
See the issue for a repro.