Windows build number: Version 10.0.18362.657
Windows Terminal version (if applicable): Commit ea1bb2ed9359fcc6ded32ad11a8cab544b91ae0e
From a bash shell in conhost, execute the following command:
printf "\e[0;7mReverse\e[0;4mUnderline\e[m\n"
It should display the first word with reversed video, and the second word underlined.
For example, here's what it looks like in mintty:

The SGR 0 in the second sequence doesn't take effect, so the second word is both underlined and reversed.

I should mention that I'm currently experimenting with a refactor of the SGR code, based on a discussion we had in PR https://github.com/microsoft/terminal/pull/3160#discussion_r341249386. That refactoring actually fixes this bug (which is how I discovered it in the first place), but it's still a work in progress, and may be in that state for a while. However, if there is an urgent need for this to be fixed I can probably put together a simpler PR targetting just this bug.
No need for a rush fix on this one. I'll yank the triage tag off (and leave it in 21H1). Thanks for being our VT champion!
:tada:This issue was addressed in #5758, which has now been successfully released as Windows Terminal Preview v1.1.1671.0.:tada:
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Most helpful comment
No need for a rush fix on this one. I'll yank the triage tag off (and leave it in 21H1). Thanks for being our VT champion!