For anyone who’s interested, Microsoft have provided an update that’s about as helpful as you might have expected, right at the top of the Github issue where this has been reported.
! Note
What we Know
There is an issue impacting all store applications on Windows as of 2026-01-21.
There have been some reports that choosing to Repair the Terminal application has restored it to working order.
For anyone who’s interested, Microsoft have provided an update that’s about as helpful as you might have expected, right at the top of the Github issue where this has been reported.
Source