diff --git a/internal/util-logging/src/main/scala/sbt/internal/util/Terminal.scala b/internal/util-logging/src/main/scala/sbt/internal/util/Terminal.scala
index 8c4644b32..d4adac080 100644
--- a/internal/util-logging/src/main/scala/sbt/internal/util/Terminal.scala
+++ b/internal/util-logging/src/main/scala/sbt/internal/util/Terminal.scala
@@ -306,9 +306,7 @@ object Terminal {
       case _       => sys.props.get("sbt.log.format").flatMap(parseLogOption)
     }
   }
-  private[this] lazy val superShellEnabled = sys.props.get("sbt.supershell").map(_ == "true")
-  private[sbt] lazy val isAnsiSupported: Boolean =
-    logFormatEnabled.orElse(superShellEnabled).getOrElse(useColorDefault)
+  private[sbt] lazy val isAnsiSupported: Boolean = logFormatEnabled.getOrElse(useColorDefault)
   private[this] val isDumbTerminal = "dumb" == System.getenv("TERM")
   private[this] val hasConsole = Option(java.lang.System.console).isDefined
   private[this] def useColorDefault: Boolean = {
@@ -754,7 +752,7 @@ object Terminal {
   private[this] def fixTerminalProperty(): Unit = {
     val terminalProperty = "jline.terminal"
     val newValue =
-      if (!isAnsiSupported) "none"
+      if (!isAnsiSupported && System.getProperty("sbt.io.virtual", "") == "false") "none"
       else
         System.getProperty(terminalProperty) match {
           case "jline.UnixTerminal"                             => "unix"
diff --git a/server-test/src/test/scala/testpkg/TestServer.scala b/server-test/src/test/scala/testpkg/TestServer.scala
index a5595c09e..b2c6a2f62 100644
--- a/server-test/src/test/scala/testpkg/TestServer.scala
+++ b/server-test/src/test/scala/testpkg/TestServer.scala
@@ -163,7 +163,7 @@ case class TestServer(
   val forkOptions =
     ForkOptions()
       .withOutputStrategy(OutputStrategy.StdoutOutput)
-      .withRunJVMOptions(Vector("-Dsbt.ci=true", "-Dsbt.io.virtual=false"))
+      .withRunJVMOptions(Vector("-Djline.terminal=none", "-Dsbt.io.virtual=false"))
   val process =
     RunFromSourceMain.fork(forkOptions, baseDirectory, scalaVersion, sbtVersion, classpath)