Basically, the issue is fairly simple to reproduce (cmd.exe, windows):

1. `vim -Nu NONE`
2. `set tgc`
3. `set cursorline`
4. `set ft=vim`
5. `syntax on`
6. `iecho "hello world"`

^^^^ we can see syntax under cursorline

7. ` colo industry`

^^^ no syntax highlighting


And it boils down to whether colorscheme did define `Normal` group or not.  
For example, if you remove `:hi Normal` from `industry` -- it will "fix" 
the cursorline issue.

@chrisbra, I remember we were discussing it on vi.se in comments, but 
couldn't find it.

понедельник, 24 января 2022 г. в 12:22:43 UTC+3, Maxim Kim: 

>
> https://vi.stackexchange.com/questions/31881/how-do-i-make-sure-terminal-vim-has-syntax-highlighting-with-cursorline-and-t
>
>
>
> понедельник, 24 января 2022 г. в 12:13:10 UTC+3, Maxim Kim: 
>
>> It is a "known" issue with windows cmd and 'termguicolors'.
>>
>>
>> понедельник, 24 января 2022 г. в 11:55:56 UTC+3, Christian Brabandt: 
>>
>>> that sounds more like a problem with your colorscheme
>>>
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