Fun fact: if you have Windows Terminal installed, it takes over `conhost.exe` and brings telemetry spying even to old apps which never had it before :D
Are you referring to the pixel-level font smoothing they use by default (as opposed to CMD's subpixel-level font smoothing)?
You need to define the "antialiasingMode" key in the settings JSON for the default profile to hold the value "cleartype", rather than "grayscale" (which is the default value). I don't believe this is exposed in the GUI settings page.
Note that this only affects the actual terminal emulation area. The rest of the application will still be pixel-level font smoothed (so e.g. the tab titlebars, the settings, etc.).
It's the lack of subpixel anti-aliasing (aka ClearType). For some reason it's being erased from a lot of modern software. It's why Windows >= 8 UWP apps and GNOME look so blurry.
It's just another example of why developers shouldn't be given the fanciest tech available (in this case: high DPI screens) so that they have to experience how actual users see their software.
I've only used it through RDP on Wayland and it's been fine visually. Downloading it can be a challenge if you don't know where to look (Github, not Microsoft's App Store...)
Have they fixed font rendering yet? cmd.exe looks better on my laptop