https://bugs.winehq.org/show_bug.cgi?id=52531
--- Comment #3 from Eric Pouech eric.pouech@orange.fr --- can't reproduce here: xterm works fine
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so it's really how the terminfo/termcap of xterm is defined
I suppose 'infocmp xterm | grep kbs' shows kbs=^H (or similar) on your side
while I have kbs=^?
which is what we expect (and what a "standard" configuration should be)
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the work around is to find a suitable $TERM value for running cmd.exe (perusing a bit, maybe 'gnome' could work) (again 'infocmp gnome | grep kbs' should tell)