Made changes according as per Review Comments.

src/browser/renderer/Renderer.ts

@@ -15,7 +15,6 @@ import { ICharSizeService, ICoreBrowserService } from 'browser/services/Services
 import { IBufferService, IOptionsService, ICoreService } from 'common/services/Services';
 import { removeTerminalFromCache } from 'browser/renderer/atlas/CharAtlasCache';
 import { EventEmitter, IEvent } from 'common/EventEmitter';
-import { color } from 'browser/Color';
 
 let nextRendererId = 1;
 
@@ -45,7 +44,6 @@ export class Renderer extends Disposable implements IRenderer {
     super();
     const allowTransparency = this._optionsService.options.allowTransparency;
     this._characterJoinerRegistry = new CharacterJoinerRegistry(this._bufferService);
-    color.blendSelectionWithBgWithOpacity(this._colors);
     this._renderLayers = [
       new TextRenderLayer(this._screenElement, 0, this._colors, this._characterJoinerRegistry, allowTransparency, this._id, this._bufferService, _optionsService),
       new SelectionRenderLayer(this._screenElement, 1, this._colors, this._id, this._bufferService, _optionsService),

src/browser/renderer/SelectionRenderLayer.ts

@@ -78,7 +78,7 @@ export class SelectionRenderLayer extends BaseRenderLayer {
       return;
     }
 
-    this._ctx.fillStyle = this._colors.selection.css;
+    this._ctx.fillStyle = this._colors.selectionTransparent.css;
 
     if (columnSelectMode) {
       const startCol = start[0];

src/browser/renderer/dom/DomRenderer.ts

@@ -54,7 +54,6 @@ export class DomRenderer extends Disposable implements IRenderer {
     @IBufferService private readonly _bufferService: IBufferService
   ) {
     super();
-    color.blendSelectionWithBgWithOpacity(this._colors);
     this._rowContainer = document.createElement('div');
     this._rowContainer.classList.add(ROW_CONTAINER_CLASS);
     this._rowContainer.style.lineHeight = 'normal';
@@ -226,7 +225,7 @@ export class DomRenderer extends Disposable implements IRenderer {
       `}` +
       `${this._terminalSelector} .${SELECTION_CLASS} div {` +
       ` position: absolute;` +
-      ` background-color: ${this._colors.selection.css};` +
+      ` background-color: ${this._colors.selectionTransparent.css};` +
       `}`;
     // Colors
     this._colors.ansi.forEach((c, i) => {