I believe this has always been an issue when running the server with the "nogui" flag.

When entering a command into the console, arrow keys cannot be used as they result in the following text getting printed out:

^[[A ^[[B ^[[C ^[[D

This makes it very difficult to enter any commands into the terminal as you cannot easily retrieve the last command using the up arrow, and cannot go backwards with the left arrow.

Furthermore, the Home and End keys are also not usable as they result in:

^[[1~ ^[[4~

The ability to use arrow keys in the terminal would be a very helpful addition to all those who host their own Minecraft server.