@Henrik Aldermo Thank you for your patience over the matter.
I am glad that your issue is resolved for now.
I digged on the issue internally and came to know that there is a reported bug on this where few users have seen the same behavior. I reached out to Product Team and they did mentioned that the bug is in pipeline to work upon. They currently don't have an ETA on this but I do assure is that it will be worked upon.
Hope it helps :) !!!
Please 'Accept as answer' if it helped, so that it can help others in the community looking for help on similar topics
@prmanhas-MSFT No problem. Since I had a workaround it didn't prevent me from using the Shell.
Anyway, I don't if you or your colleagues did something because now the Cloud Shell site is working as expected again.