This works well enough in practice, but it relies on a few strange hacks. For example, it writes a marker into the console's backbuffer to detect window scrolling, and it enables mark-mode in the hidden conhost window to "freeze" it while it queries for changes. Also, it's not very robust to changes in the console implementation, so it broke for a little while due to the console changes in Windows 10 (though this was fixed quickly.)
Because of this, it's strange to see Microsoft using it in an official product. I'd love to see them add a proper pseudoterminal (pseudoconsole?) API to Windows 10. There is clearly a need for it.