Many problems in Mac Terminal.app

[snej]

I'm seeing many, many visual problems running the demo app in macOS 12's stock Terminal app. Most of them seem to involve background colors, but some are worse -- e.g. in the Focus demo everything is underlined and clicking has no effect.

The demo does appear to work OK in the 3rd-party iTerm2.

Is TermOx supposed to work in Terminal? I couldn't find any obvious compatibility chart.