Thanks for the explanation. So although Emacs uses escape sequences to move the cursor on Unix-like platforms, the Windows build uses the native console API. What surprised me was that the cursor position does update for up and down movements, and it does update horizontally at the same time. It just doesn't move if you do a horizontal movement by itself. If the cursor movement commands aren't supported by PuTTY or by OpenSSH server+client, I would expect to see neither kind of movement working.

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