I had similar requirements. I switched to Baikal, which has been happily running in a docker container ever since.

I really enjoy alacritty, it provides you a terminal with nice defaults.

For a bit more base functionality, such as tabs or split panes, you could look into kitty or wezterm for example.

In the case of alacritty you’d need to look at other tools such as tmux or zellij for multi-terminal workspaces in one window.