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100% focused opacity interferes with unfocused opacity
When window opacity while focused is set to 100%, the background while unfocused doesn't follow the Unfocused Appearance settings:
Some extra padding allows you to see that the background is there, but the command window is opaque.
As soon as opacity is less than 100%, the background behaves as expected while unfocused:

It doesn't matter what profile is used (note the displayed settings are defaults) - even when the settings are applied to individual profiles the behavior is the same.
I'll provide whatever other info I can, just let me know what's needed.

You know, I think I've seen this too with Atlas enabled, even without an unfocused appearance. I think I've been able to make it happen a couple times with just the "set opacity" actions.
Thanks for filing! We'll make sure to take a look ☺️
Can confirm that this issue no longer repros if you disable atlas engine rendering and restart WT. Investigating further.
Further updates:
- This does not repro if you have a background image for both appearances (doesn't need to be the same image, you just need to have a bg image in each appearance)
@PankajBhojwani If this is atlas-only, we can punt it out of 1.17. It's not going to be enabled by default until later.
Sounds good, punting to 1.18 for now.