Neovim TUI will be broken when used inside DevPod container

What happened?
When using Neovim as described in Quickstart Neovim page, Neovim will behave weirdly with broken scrolling with split buffers. I have created an issue to the neovim team: Issue. It seems that this issue is exclusive to DevPod due to the way it uses ProxyCommand when ssh-ing to the DevPod container.
Things that I and the people inside the neovim issue have tried:

• Set TERM variable inside the container to xterm or alacritty or xterm-256color and install the appropriate terminal info -> This does not solve the issue.
• Try using docker container exec -it containername bash directly -> This worked.
• Try running tmux inside the container before using neovim -> Weirdly this worked?!

What did you expect to happen instead?
Neovim should behave normally inside devpod ssh just like when used directly inside container's shell.

How can we reproduce the bug? (as minimally and precisely as possible)

1. Create a minimal devcontainer.json that contains an ubuntu container.
2. Install neovim inside the container, either directly or by using devcontainer features.
3. Try using neovim and open multiple buffers. Scrolling on one buffer will break the other buffers.

Local Environment:

• DevPod Version: 0.5.18
• Operating System: Mac and Linux
• ARCH of the OS: AMD64 and ARM64

DevPod Provider:

• Local/remote provider: docker

Anything else we need to know?