复现方法

1. 切换到中文输入法，例如搜狗拼音输入法，微软拼音。
2. 打开 Command Prompt。
3. 输入“dir”，然后逐个删除。此时光标消失。

详见视频

<iframe frameborder="no" scrolling="no" src="https://player.bilibili.com/player.html?aid=285017601&bvid=BV1Ac411h7oZ&cid=173866576&page=1&as_wide=1&high_quality=1&danmaku=0" style="position: absolute; width: 100%; height: 100%; left: 0; top: 0;"></iframe>

Workaround

https://blog.csdn.net/leilei7407/article/details/101266801

This issue has been reported long ago, see https://github.com/microsoft/terminal/issues/810.