And I discovered my first irritating bug ...
The Sixel graphics in Telnet works, but I have a bug in the way I decode the initial ESC sequence that throws the terminal into graphics mode and it is being too aggressive. I found this when I started trying to edit code and my screen was blank; it went into graphics mode during a vim session. Not cool.
I normally would spin another version of the release but that's too much work for this, so I just updated the zip files with the binaries and disabled the Sixel support. If you have already downloaded the binaries please go fetch them again from my site. (Other sites might have mirrored the first version.)
My apologies for the inconvenience ...
-Mike