Some more bugfixes later, I took another look at NT 4.0's MS-DOS prompt (cmd.exe).
I ran command.com, which seems to run, but somehow display updates are very slow or somehow delayed for some weird reason? Like always a command entry behind for some weird reason. It seems to detect the input fine, though, just display updating (text mode) too slow when running command.com for example. I type a full command, and only after pressing carriage return it seems to update the display for some weird reason.
Running edit.com now seems to work properly. Or at least when running it (doesn't update the display, or at least not yet) and then switching to fullscreen mode shows it's actually running.
Switching back to windowed mode, it shows the MS-DOS prompt again, instead of the edit.com application that's actually controlling the 'display'?
Edit: Hmmm... This just seems to be the case when running MS-DOS programs (.com programs at least) from within cmd.exe.
Running edit.com directly from the start menu (using the Run dialog box (found in the Start menu) or Windows+R keyboard combination seems to give a version that properly updates the window.
So it's just some weird issue with the window not updating when nesting MS-DOS programs inside the cmd.exe program? Or maybe MS-DOS program nesting in general, but I didn't verify that yet.
Edit: OK. Through the run dialog box running command.com, which in turn runs edit.com it seems to work fine in windowed mode.
So there's some weird problem with cmd.exe blocking display updates somehow while executing programs? Anyone knows of such an issue with it?
Edit: Hmmm... When running the edit.com inside command.com, viewing a file, the display updates. But only once the mouse (that's a normal graphical mouse cursor) moves when it's in windowed mode?
In fullscreen mode, it seems to update immediately?
So it's not just a problem with command.com. It's a NTVDM issue?