Issue when using the fsmonitor-watchman hook?

Hi all,

I recently installed v2.36.0-rc1 and started getting the warning about the deprecation of core.useBuiltinFSMonitor configuration. It appeared for each 'git' invocation which was a bit annoying. Fortunately, I had some spare time so I went the route of actually applying the suggested alternative rather than suppressing the warning.

According to the git-hooks documentation, I configured core.fsmonitor to '.git/hooks/fsmonitor-watchman' and after that for some reason all the styles in the terminal seems to have gone awry (I use Windows Terminal with PowerShell 7). A sample demonstration.

This is how the terminal should've looked (it appears with appropriate colours):

   04-10 23:36:38 D:\Source\kaartic\git [(f2817c1...) +2 ~0 -0 !]
 >

After setting the config the following is how it got rendered (without colours):

←[95m04-10 23:36:20 ←[0mD:\Source\kaartic\the-wallet 
←[93m[←[0m←[96mmaster←[0m←[96m ≡←[0m←[31m←[49m +1←[0m←[31m←[49m 
~0←[0m←[31m←[49m -0←[0m←[31m !←[0m←[93m]←[0m
 > cd ..\git\

I should note that I use posh-git [2] plug-in for the colourized Git metadata info in the terminal.

Also, I got the following error messages when running 'git status'

 > git status
open2: exec of watchman -j --no-pretty failed: No such file or directory 
at .git/hooks/fsmonitor-watchman line 78.
Unsupported query-fsmonitor hook version '1'.
Falling back to scanning...
On branch master
Your branch is up to date with 'origin/master'.

...

It's clear that I'm doing something wrong. I'm not sure what, though. The fact that I have no clear idea about what the fsmonitor-watchman hook does, does not help at all. It would be great if someone could help me understand what I got wrong :)

[1]: https://git-scm.com/docs/githooks#_fsmonitor_watchman [2]: https://github.com/dahlbyk/posh-git