Windows Terminal is a modern terminal application for users of command-line tools and shells like Command Prompt, PowerShell, and Windows Subsystem for Linux (WSL).
Its main features include multiple tabs, panes, Unicode and UTF-8 character support, a GPU accelerated text rendering engine, and the ability to create your themes and customize text, colors, backgrounds, and shortcuts.
Note the word Modern terminal. This modern terminal is like a CMD, but a modern CMD. It supports multiple tabs, and it supports various panes.
Besides, it also has support for customizing the look and feel of the modern terminal. You can create themes and customize text, colors, backgrounds, shortcut key bindings, and almost everything inside Windows Terminal.

Windows Terminal Tips

Windows Terminal allows you to set and customize almost every feature, from the Shell, through colors and user experience. Some of the tips are generic tips, and some of them are unusual.

First impressions

Once you installed Windows Terminal and opened for the first time, it will create a new profile. Then you will receive the default Windows Terminal screen with PowerShell.
Windows Terminal comes with default profiles that include shells with the following ones: PowerShell, Azure Cloud Shell, and Command Prompt.
If you’ve installed any shell before or after Windows Terminal, this shell will automatically be on Windows Terminal. For example, if you’ve got WSL on your machine, the WSL will be part of the Windows Terminal.

Global Settings

Like any other command editor, the Windows Terminal got profiles and global settings with many settings and values. All of these settings are available from the Windows Terminal and can be changed.
The values listed below affect the entire Windows Terminal, regardless of the profile settings. The following settings should be set at the root of your settings.json file.
Global settings include the following values:

• Schema
• Selection settings
• Copy formatting
• Word delimiters
• Animations
• Rendering
• and more settings

To open the global settings, you need to open the Settings from the Windows Terminal’s main menu or open with the combination keys: “CTRL +,” together.

TIP the folder location of the settings file is located at the following location “C:\Users\%username%\AppData\Local\Packages\Microsoft.WindowsTerminal_8wekyb3d8bbwe\LocalState”
Some highlights:
snapToGridOnResize allow you to snap to the nearest character boundary on resize

The property: “snapToGridOnResize”: true,

Paste warnings will enable you to receive a warning message when pasting text with more than 5 KiB characters. The warning message will allow you to paste anyway or to cancel.

The property: “largePasteWarning”: true,

All of the global settings, options, values, and configuration with the following link: Windows Terminal Global Settings | Microsoft Docs

Profile Settings

There are profile settings in global settings, and these profile settings are specific to each unique profile.
The Profile includes the following settings:

• Launch Settings
• Selection
• Tab UI
• Miscellaneous
• Profiles

TIP: If  you want to apply a setting to all of your profiles, you can add it to the defaults section above the list of profiles in your settings.json

Custom Actions – Keybindings

Windows Terminal has an additional option called Custom Actions, which provides unlimited possibilities and actions.
Commands inside the actions array will automatically be added to your command palette.

There is a section with the name “keybindings” where different keys are configured and associated with specific commands.
Some Windows Terminal generic keys:

• Automatic pane split of current profile > Alt+Shift+=
• Horizontal pane split of default profile > Alt+Shift+Minus
• Vertical pane split of default profile > Alt+Shift+Plus
• Move the split window > Alt+Shift+Arrow Keys

More action on Windows Terminal Actions | Microsoft Docs

Change Default Shell

Add PowerShell 7 TAB

You can add any shell and any language to Windows Terminal, and once you’ve got the language install on your device, you can configure an additional tab to Windows Terminal.
If we take the example of PowerShell 7, add PowerShell 7 to your Windows Terminal to make sure that PowerShell 7 install on your device and then add the PowerShell 7 parameters to the global settings (the JSON file).
The following image describes the parameters that need to be configured on a JSON file with command-line, guide, name, and starting directory.
Code on PowerShell for Windows Terminal

TIP: The latest PowerShell 7 add PowerShell 7 automatically to Windows Terminal.

Windows Terminal Settings Json file on GitHub