Most of the terminal I have used in Windows were at best lackluster. However wsl2 is a game changer which makes your Windows OS Unixy.
First download the Windows terminal form here. By default, it will open Windows Powershell.
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Next we need to install Ubuntu virtual machine. Open Windows Powershell and type
> wsl --install -d Ubuntu
You might need to reboot for the changes to be updated.
You can select Ubuntu from the setting as default
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Next, we'll make the terminal more usable.
First install oh-my-zsh.
$ sudo apt-get update -y
$ sudo apt-get install git zsh -y
$ sh -c "$(curl -fsSL https://raw.github.com/ohmyzsh/ohmyzsh/master/tools/install.sh)"
Install nerd font
Generate a guid using powershell
[guid]::NewGuid()
Open Command Palette -> settings.json
profiles: {
    list: [
            {
                "colorScheme": "One Half Dark",
                "font": 
                {
                    "face": "mononoki NF",
                    "size": 14
                },
                "guid": "{GUID}",
                "hidden": false,
                "name": "Ubuntu",
                "source": "Windows.Terminal.Wsl"
            }
    ]
}
Install Powerlevel10k theme
$ git clone --depth=1 https://github.com/romkatv/powerlevel10k.git ~/powerlevel10k
# Add following in ~/.zshrc
ZSH_THEME="powerlevel10k/powerlevel10k"
source ~/powerlevel10k/powerlevel10k.zsh-theme
$ zsh 
It will prompt powerlevel font setup. If not type
$ p10k configure
Edit ~/.p10k.zsh to only show current directory
# change 
typeset -g POWERLEVEL9K_SHORTEN_STRATEGY=truncate_to_unique
# change it to 
typeset -g POWERLEVEL9K_SHORTEN_STRATEGY=truncate_to_last
Install lunarvim from here.