Did you by any chance move the Terminal app out of the Applications -> Utilities folder, or make a private copy of Terminal in another folder?
I have seen situations where users did this, and what they were launching was NOT the current macOS Terminal version, but an older version from several releases ago.
Definitely try Safe boot.
You can also try moving ~/Library/Preferences/com.apple.Terminal.plist out of that directory
Finder -> Go -> Go to folder -> ~/Library/Preferences/
then drag the com.apple.Terminal.plist somewhere else.
Try an alternate terminal emulator. My preferred terminal emulator is iTerm2
https://iterm2.com/
If this does not work, then there is something common between the 2 emulators, such as your shell initialization files (.profile, .bash_profile, .bash_login, .bashrc, or other if you are using a different shell, such as zsh, tcsh, etc...).
Note, if iTerm2 does work, you still want to figure out why Terminal is failing, but you also might consider switching to iTerm2 if you use a terminal emulator a lot, as it is very good terminal emulator.