I have to laugh. Yesterday, I noticed version 5 of PowerShell  running inside Windows Terminal. So I naturally wondered: “How do I upgrade this?” Turns out, in fact, that no upgrade is needed. It all comes down to the current Windows Terminal PowerShell selection. I’ll explain shortly, but first: look at the window in the lead-in graphic.

Managing Windows Terminal PowerShell Selection

By default, version 5.1.xxx… appears when you open Windows Terminal. But it’s easy to get to a newer PowerShell version. No upgrading is necessary: you need only know how to do this. If you click on the down-caret at the far right of the title bar, a menu appears, like this:

The down-caret menu lets you choose among shells you can run in a Windows Terminal tab. [Click image for full-sized view.]

The trick — if you can call it that — is to choose the right version of PowerShell (and corresponding default) to run. The top item in the menu corresponds to version 5.1.xxx. The fourth item down brings up the latest 7.x PowerShell version (specifically, 7.2.5). If you click Settings, you can also choose this version as the “Default Profile” which makes the new version (rather than the 5.1.xxx version) appear whenever you open Windows Terminal, or click the “Plus” sign to open a new default Terminal tab.

As with many other things in Windows World, foreknowledge and understanding are key to doing things right. In my case, I had no need to update PowerShell. I only needed to pick the right version to run inside Windows Terminal. Now I know how. If you didn’t know how already, this should make things equally simple for you. Cheers!