Workaround: Terminal works fine in Windows 10 if you use legacy console.
To do so, open a command prompt window, right click on the title, then select Properties. At the bottom, check “Use legacy console”. Confirm the dialog window and go back to WebStorm to launch a new terminal. It should work.
In any case, this is the ticket to watch after:
https://youtrack.jetbrains.com/issue/IDEA-143300 — star/vote/comment to get notified on progress.
UPDATE:
This issue has now been resolved — the fix will arrive in next major version — PhpStorm v10/WebStorm v11 (or whatever that version will be as long as it’s based on 142.xx branch or newer).
UPDATE:
For those who have problems with right clicking and finding “Properties” menu entry:

