Recording a gif for this one would be tricky (because of fps)
Anyway, the problem is that the cursor blinks with a changing/inconsistent interval.
Win10, powershell, alpha34
Same for me in Linux, I guess after some last updates
Same for me. It doesn't happen on start, but after some time using it.
Running into this problem as well on WSL
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not fixed yet

I am seeing this issue as well but only when using the WSL/Default distro shell.