All commandline clients run attached to a console server, and that server is conhost.exe. Conhost is responsible not only for being the console server, but drawing the actual terminal window these apps run in. So when you alunch cmd or powershell, what you're seeing is conhost.exe "hosting" these console applications.

What we're exposing here is the "master side" of conhost, which will the other applications act as Terminals, like how there is gnome-terminal, xterm, terminator, etc on linux.