Environment

Windows build number: Microsoft Windows [Version 10.0.18363.535]
Windows Terminal version (if applicable): 0.10.761.0

Steps to reproduce

1. Open cmd in Terminal.
2. Reduce the width to minimum (well, not minimum but small enough, as it occurs after crossing some threshold).
3. Press and hold Tab.

Expected behavior

cmd cycles through the directories:

Actual behavior

The names of directories are printed in succession without erasing the previous name which leads to this:

Also, note that this behaviour is not unique to Terminal, the default command promt(cmd/conhost/conPTY??) also has this bug:

After resizing the terminal the text cannot be erased.