In the Settings window, select a Windows Terminal profile from the left section whose cursor shape you want to change. If you want, you can also first create a new profile in Windows Terminal and ...
In an Opera browser user post, there was another fix a different Windows user found which was simpler than running terminal commands and it has to do with the appearance of the mouse cursor.
You can repeat the above steps to change the color scheme for another profile in Windows Terminal. You can create a color scheme with the custom foreground color, background, cursor color ...