But every option has a corresponding parameter in a JSON configuration file that stores all the Windows Terminal settings. In recent releases, Windows Terminal has a convenient GUI-based settings section that makes setting up and customizing the app more user-friendly for those new to the app. Also, use Background alignment to reposition your image, and Background image opacity to make it more or less transparent. You can change how Windows Terminal fills the background with the image using the Background image stretch mode parameter. These settings work similarly to how the desktop background works. If you are not satisfied with how your image looks in Windows Terminal, there are several additional customization options. This action will apply the default background settings to the image you have just selected. To set a custom background in Windows Terminal, click Browse and select an image of your choice.To do that, check the Use Desktop Wallpaper checkbox. Here, specify the path to the image or automatically set your current desktop background as a Windows Terminal background. Scroll down to the Background section.Click the one you want to set a background image for. Select one of the profiles available in the left panel.

Alternatively, press Ctrl +, (Ctrl and comma).

Select Settings from the drop-down menu.

Launch Windows Terminal and click the arrow-down button in the tabs panel.

Begin with updating Windows Terminal to the latest version from GitHub or the Microsoft Store.

Set Windows Terminal Wallpaper in the JSON file How to Change Background Image in Windows Terminal

Sync windows terminal settings