I recall this was working in older versions of Terminal and in Windows' copy of the console window, but it seems to have broken more recently.

Environment

Windows build number: 18363.720 (Windows 10 ver. 1909 with update KB4551762)
Windows Terminal version: 0.10.781.0

Steps to reproduce

1. Open this file in an editor: C:\Windows\System32\WindowsCodecsRaw.txt
2. Notice that the last line of the file "THE SOFTWARE IS PROVIDED".... is over 500 characters long.
3. Open Terminal to the Command Prompt or PowerShell, then run:
   type C:\Windows\System32\WindowsCodecsRaw.txt
4. Drag to select text from multiple in-window lines of the last line of the file, then right-click to copy.
5. Paste the clipping into a new file in Notepad.

Expected and actual behavior

Expected: the text is all on one line.
Actual: the text is split into multiple lines.