Terminal cursor color not respecting transparency

It seems the Terminal cursor color only accepts solid colors. Meaning it completely covers the character at insertion point, making it impossible to read.

This is happening in both Settings > Terminal > Theme > “Same as Editor” mode and also in “Custom” mode when setting a specific non-opaque cursor color. The color picker allows a transparent color to be selected, but the cursor itself remains opaque. When going back into settings, the custom cursor color reverts to fully opaque again.

Nova: 10.6 (Build 476615)
Machine: MacBook Air M2
OS: Ventura 13.3.1