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 762541cc4..d7cca5535 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
@@ -337,9 +337,10 @@ object Terminal {
    * @tparam T the result type of the thunk
    * @return the result of the thunk
    */
-  private[sbt] def withStreams[T](isServer: Boolean)(f: => T): T = {
+  private[sbt] def withStreams[T](isServer: Boolean, isSubProcess: Boolean)(f: => T): T = {
     // In ci environments, don't touch the io streams unless run with -Dsbt.io.virtual=true
-    if (hasConsole && !isDumbTerminal) consoleTerminalHolder.set(newConsoleTerminal())
+    if ((hasConsole && !isDumbTerminal) || isSubProcess)
+      consoleTerminalHolder.set(newConsoleTerminal())
     if (hasVirtualIO) {
       hasProgress.set(isServer && isAnsiSupported)
       activeTerminal.set(consoleTerminalHolder.get)
diff --git a/main-command/src/main/scala/sbt/internal/client/NetworkClient.scala b/main-command/src/main/scala/sbt/internal/client/NetworkClient.scala
index 57ef3ea65..c89715661 100644
--- a/main-command/src/main/scala/sbt/internal/client/NetworkClient.scala
+++ b/main-command/src/main/scala/sbt/internal/client/NetworkClient.scala
@@ -1160,7 +1160,7 @@ object NetworkClient {
       Runtime.getRuntime.addShutdownHook(hook)
       if (Util.isNonCygwinWindows) sbt.internal.util.JLine3.forceWindowsJansi()
       val parsed = parseArgs(restOfArgs)
-      System.exit(Terminal.withStreams(false) {
+      System.exit(Terminal.withStreams(isServer = false, isSubProcess = false) {
         val term = Terminal.console
         try client(base, parsed, term.inputStream, System.err, term, useJNI)
         catch { case _: AccessDeniedException => 1 } finally {
diff --git a/main/src/main/scala/sbt/Main.scala b/main/src/main/scala/sbt/Main.scala
index 26fa0b00b..d7b857fa4 100644
--- a/main/src/main/scala/sbt/Main.scala
+++ b/main/src/main/scala/sbt/Main.scala
@@ -79,13 +79,13 @@ private[sbt] object xMain {
         BspClient.run(dealiasBaseDirectory(configuration))
       } else {
         bootServerSocket.foreach(l => ITerminal.setBootStreams(l.inputStream, l.outputStream))
-        ITerminal.withStreams(true) {
+        val detachStdio = userCommands.exists(_ == BasicCommandStrings.DashDashDetachStdio)
+        ITerminal.withStreams(true, isSubProcess = detachStdio) {
           if (clientModByEnv || userCommands.exists(isClient)) {
             val args = userCommands.toList.filterNot(isClient)
             NetworkClient.run(dealiasBaseDirectory(configuration), args)
             Exit(0)
           } else {
-            val detachStdio = userCommands.exists(_ == BasicCommandStrings.DashDashDetachStdio)
             val state0 = StandardMain
               .initialState(
                 dealiasBaseDirectory(configuration),