Would be nice if someone ran the steps to reproduce on ghostty

No, this bug is specific to iTerm2. As for whether there is something as bad for ghostty floating out there, I would hope not. It's a strong goal for it not to be. In Ghostty (and also the terminal I currently use, WezTerm) modularity is prized. What belongs as a clear add-on feature such as this doesn't get to run without being configured first.

OTOH, in iTerm2, surprising new features seem to be welcome, if not now, in recent memory. https://news.ycombinator.com/item?id=40458135