Installing Windows Terminal on Windows Server can be annoying as the installer is only available on client systems.
However, you can use Windows PowerShell to configure it on a Windows server machine using the instructions below:
Download the latest package of Windows Terminal for Windows 11 (Currently Microsoft.WindowsTerminal_1.18.2822.0_8wekyb3d8bbwe.msixbundle
).

Download the latest VC UWP RunTime (Microsoft.VCLibs.x64.14.00.Desktop.appx
).
Check the link C++ Runtime framework packages for Desktop Bridge.

Next, open a PowerShell Window (Use the Classic Windows PowerShell)
The run the commands:
Start by installing the Desktop Framework Packages
Add-AppxPackage -Path <PathTo>\Microsoft.VCLibs.x64.14.00.Desktop.appx
Finally, install the Windows PowerShell command.
Add-AppxPackage -Path <PathTo>\Microsoft.WindowsTerminal_1.18.2822.0_8wekyb3d8bbwe.msixbundle
End.
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