Windows build number: 10.0.18995.0
Windows Terminal version (if applicable): 0.5.2762.0
Open Terminal app.
Should not show a white border on the bottom of the window.
Shows a 1 pixel thin white border on the bottom of the window.

Can confirm the existence of the issue. Occurs after the update to Windows Insider Preview.
It also shows a 1 pixel thin white border on the left side of the window. (build 19008)
Screen Resolution: 2256x1504, Scale: 125%:

Screen Resolution: 1920x1080, Scale: 100%:

Chatted with the DWM team, who owns the API we're using to control our non-client drawing. They've got a solution for us, but it'll take some time to implement.
I'm tagging this into #1625.
(We think that this is going to be closely related to a bucket of things, #3136 #1859 #3064 #1307)
@DHowett-MSFT In some of my projects, I need to use DwmExtendFrameIntoClientArea to get a window shadow. But I make my main window layered, and make the color key for the window frame transparent. I think this will solve the issue:
SetLayeredWindowAttributes(_window.get(), RGB(255, 0, 255), 0, LWA_COLORKEY);
So it would look like this:
WINRT_VERIFY(CreateWindowEx(WS_EX_LAYERED,
wc.lpszClassName,
L"Windows Terminal",
WS_OVERLAPPEDWINDOW,
CW_USEDEFAULT,
CW_USEDEFAULT,
CW_USEDEFAULT,
CW_USEDEFAULT,
nullptr,
nullptr,
wc.hInstance,
this));
SetLayeredWindowAttributes(_window.get(), RGB(255, 0, 255), 0, LWA_COLORKEY);
Plus, you won't see the white lines at the top and bottom when resizing the window anymore.
@Arush-Agarampur Thanks! @greg904 actually has a comprehensive fix for this in progress in #3394.
Ahh OK, sorry I didn't see that. First time contributing to a huge project like this... 馃槄
:tada:This issue was addressed in #3394, which has now been successfully released as Windows Terminal Preview v0.7.3291.0.:tada:
Handy links:
That made the issue 4 times worse as you now have 4 white borders: top left right and bottom 馃槀

I think this issue needs to be reopened.
You're going to hate to hear this, but it's actually "by design" -- there's no official way for an application to opt in to match the shell's "dark theme" 鈽癸笍. If we trespass on those 1px borders, DWM will give up on us and force us to draw every pixel of our application. We've seen what lies at the end of that road.
You're going to hate to hear this (with all your effort 馃檹), but could we roll it back to affect only the bottom border? 馃
I don't want to come across as pushy, but I think the best idea is to fall back to the bottom border, and use the layered window attribute I commented earlier. It hides it perfectly, also while resizing.
I appreciate your input. On the balance, though: the border pull request fixed at least seven different issues (#3064, #1307, #3136, #1897, #3222, #1859, #2268; this list does not count all the ones we later realized were caused by the same thing).
I'm willing to take a one-or-two-release regression in how terminal looks--at least until we can get it ironed out--in the name of improving our project's health.
I know that it's possible to get this right (Firefox manages it, for example), but I'd rather move forward and look for the _right_ solution than move backward and settle on the pretty bad solution we had.
Continuing discussion at #3425. We've figured out how to suppress the borders without using a private API. 馃榿
Most helpful comment
I appreciate your input. On the balance, though: the border pull request fixed at least seven different issues (#3064, #1307, #3136, #1897, #3222, #1859, #2268; this list does not count all the ones we later realized were caused by the same thing).
I'm willing to take a one-or-two-release regression in how terminal looks--at least until we can get it ironed out--in the name of improving our project's health.
I know that it's possible to get this right (Firefox manages it, for example), but I'd rather move forward and look for the _right_ solution than move backward and settle on the pretty bad solution we had.