Issue with MinTTY/MSYS2/bash and sbt showing control characters / no rich text output

A recent update (of either MinTTY/MSYS2/bash or sbt) started breaking the output of sbt such that control characters are appearing instead of displaying rich text output in the terminal:

From the image you can see that rich text does still work as can be seen from my prompt line, but sbt started showing control characters like ←[0m[.

I'm on windows 11 and it was working perfectly fine last week, and my TERM terminal setting is set to xterm.

After some searching, I found these two posts:

• https://github.com/gradle/gradle/issues/13279
• https://youtrack.jetbrains.com/issue/IDEA-247532

both suggesting that I should try setting my TERM to cygwin but this did not solve the issue.

Question

1. How can I isolate where the issue is happening? I highly suspect it's an internal sbt update because the version it's indicating is 1.6.0 but the version I installed was 1.4.4 last year. I just tried uninstalling it and installing 1.6.2 via the installer but the issue still persists.

2. Does anyone have a solution to this issue? Is it a general thing that affects certain CLIs? From the links above it looks like it used to impact gradle as well.