In previous versions of VSCode there was an arrow icon at the top of the panel that could be used to maximize the panel, for instance the terminal. I do not know exactly in which version but that button is now gone and I'm unable to find an equivalent.
My question is: how can I maximize the terminal so it takes the whole VSCode window? Is there any way to get the button back?
Which version of VSCode are you using, and in which OS?
On Mac, and with 1.65.2 (the most recent update by now), I have it in the right corner, near the X button:

Now talking about shortcuts to make your life easier, there are 2 you should be aware of.
PS: Remember that to change any shortcuts, just go over VSCode Command Palette and type Keyboard Shortcuts to change them.
There are no default shortcuts for those, in both Windows and Mac.
If you want to set any, the name of the shortcut is View: Toggle Maximized Panel:

Now talking shortcuts, if you want to resize your terminal window, in Mac there's a native shortcut that allows to increase / decrease terminal size with Cmd + Ctrl + Arrow Up / Arrow Down.
There's no default for Windows.
If you want to set / change those shortcuts, they are called Terminal: Resize Terminal Down and Terminal: Resize Terminal Up:

If you added your panel to either left or right, then the mark to make it fullscreen changes.
After clicking on the arrow below, it'll hide all your files and make the terminal to run in the whole screen for VSCode:

To get the maximize arrow on the left panel...

Left-click the bottom panel, then choose Move Panel Left

To get the maximize arrow on the bottom panel...

First, press the Customize Layout button

And select Center Panel Alignment

Then move the panel back to the bottom.

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