VS Code terminal unable to privide UTF-8 input

Question

I'm hopeful that this question is a duplicate, but I have searched a lot at this point, and I've not come across anything helpful, so I am dubious.

The following simple Java code works perfectly in Eclipse, which has its own home-built terminal, and on any *nix system (such as Macs):⁽¹⁾

public static void main(String[] args) throws Exception {
    System.setProperty("file.encoding","UTF-8");
    System.out.println("File encoding is " + System.getProperty("file.encoding"));

    Scanner console = new Scanner(new InputStreamReader(System.in, StandardCharsets.UTF_8));
    PrintStream sysout = new PrintStream(System.out, true, StandardCharsets.UTF_8);

    sysout.println("\nTests:");
    sysout.println("Can we print lambda using unicode? Let's see: \u03BB");
    
    sysout.print("Copy and paste the lambda above here: ");
    String line = console.nextLine();

    sysout.println("\nThe input consisted of " + line.length() + " character(s).");
    sysout.println("The input was: " + line);

    if (line.equals("λ")) {
        sysout.println("lambda (λ) was detected with .equals!");
    } else {
        sysout.println("lambda (λ) was not detected with .equals.");
    }

    printHexOfString("Hex of λ", "λ");
    printHexOfString("Hex of input", line);
}



private static void printHexOfString(String title, String str) {
    StringBuilder stringBuilder = new StringBuilder();

    char[] charArray = str.toCharArray();

    for (char c : charArray) {
        String charToHex = Integer.toHexString(c);
        stringBuilder.append(charToHex);
    }

    System.out.println(title+ ": "+stringBuilder.toString());
}

Eclipse Joy

When I type a lambda, I receive the expected output:

File encoding is UTF-8

Tests:
Can we print lambda using unicode? Let's see: λ
Copy and paste the lambda above here: λ

The input consisted of 1 character(s).
The input was: λ
lambda (λ) was detected with .equals!
Hex of λ: 3bb
Hex of input: 3bb

Hooray!

VS Code Troubles

However, all is not so nice in VS Code, which uses Windows Powershell. I ran chcp 65001 in the terminal at the bottom of VS Code before anything else. (Note: prior to my command, chcp by itself reports Active code page: 437, and after I type my command, I get the expected Active code page: 65001)

There, running the same code, and inputting the same lambda, I get:

File encoding is UTF-8

Tests:
Can we print lambda using unicode? Let's see: λ
Copy and paste the lambda above here: λ

The input consisted of 1 character(s).
The input was:
lambda (λ) was not detected with .equals.
Hex of λ: cebb
Hex of input: 0

What I need

I'm not sure where to go from here. I need the lambda symbol to be read, processed, and written to the console consistently. I don't need the rest of UTF-8, I only need the one symbol, so any hacky solution that gains me a lambda will be well received.

Bonus points if the solution doesn't break everything in Eclipse and in Unix (where the original code already works fine).

^{(1) - As an aside, I tried all 6 character encodings in StandardCharsets for my PrintStream and InputStreamReader, and while the numbers changed, the lambda was never detected (so it never output "String is λ"), and the last line printed was never a lambda.)}