Apparently the loss of acrylic transparency is an OS limitation.
Can we get good old transparency when the window is not focused and useAcrylic when focused?
From left
standard CMD with transparency, focused terminal, background terminal

/dup #603
Hi! We've identified this issue as a duplicate of another one that already exists on this Issue Tracker. This specific instance is being closed in favor of tracking the concern over on the referenced thread. Thanks for your report!
I know you specified βwhen not focused,β but the engineering work required is the same as 603. :)
@DHowett-MSFT Thank you, I was focused on the Acrylic transparency so much that I have missed that.
There also already is a feature-request to have different config for focused and unfocused so I guess this issue is perfectly covered by the two.
I am a Linux native and miss the gnome-terminal transparency. The idea is to see through one or more of the terminals to the windows underneath. If the focused window goes fuzzy, this defeats the whole purpose.
Totally agree with @admered1 I really don't care for acrylic it has no use.
I want plain transparency so that I can read the text behind my terminal as I am typing. That's the whole point to transparent terminal IMO.
Ideally tho I'd use acrylic if there was only an ever so slight blur such that I can still read the text behind but the terminal text is still clearer. (what I do on macOS have very slight blur and it works really well. Would love this on windows too)
Most helpful comment
I am a Linux native and miss the gnome-terminal transparency. The idea is to see through one or more of the terminals to the windows underneath. If the focused window goes fuzzy, this defeats the whole purpose.