I've been using alacritty [0] for a while now. Really happy with it. I prefer it over the Windows Terminal, as it feels faster for me. I run a single instance with WSL on the desktop and use tmux for multiplexing. Executing powershell inside tmux isn't an issue. If I need an elevated shell, I use gsudo [1].
[0] https://github.com/alacritty/alacritty
[1] https://github.com/gerardog/gsudo