Any terminal can run any command-line client application, so Windows Terminal can run any shell you prefer, such as Bash using Windows Subsystem for Linux (WSL). The same thing happens for PowerShell, the system creates a new conhost window for any client not already connected to a terminal of some kind. On Windows, if you run cmd.exe, the operating system will create an instance of conhost.exe as the 'terminal' for displaying the cmd.exe command-line client. On the other hand, 'terminal' applications, like Windows Terminal, gnome-terminal, xterm, iterm2, or hyper, are all graphical applications that can be used to render the output of command-line clients, customizing things like font, text size, colors, etc. They are also sometimes referred to as 'command-line client' applications. These are text-only applications that provide streams of characters and don't care about how they are rendered to the user. Examples of 'shell' applications include cmd.exe (the traditional Windows Command Prompt), powershell, or zsh. Windows Terminal is basically a host that enables you to run multiple command-line apps or shells side-by-side in customizable environment using tabs or window panes.

Windows terminal open as admin