[Bug]: selected text in the terminal tab does not show up as highlighted

[createthis]

Is there an existing issue for the same bug? (If one exists, thumbs up or comment on the issue instead).

• I have checked the existing issues.

Describe the bug and reproduction steps

1. Do something in the terminal tab ( ls -al for example ).
2. Click and drag with mouse to select text
3. observe selection cannot be seen

OpenHands Installation

Docker command in README

OpenHands Version

commit f292f3a from Oct 13 2025

Model Name

No response

Operating System

MacOS

Logs, Errors, Screenshots, and Additional Context

Offending issue appears to be the xterm CSS style's background, as unchecking it shows the selection: