When using the new zsh the delete key does not work properly as it replaces the deleted characters with a ~.
IBM Idea ZOS-I-4046 requesting IBM to fix this has been marked as 'Not under consideration' while providing in the comments a workaround:
Add the following to your .zshrc file:
# Fix Delete Key
bindkey '^[[3~' delete-char
Note: I have not had to do this on any other zsh implementation (think several flavors of Linux).
------------------------------
Lionel B. Dyck <><
IBM z Systems Champion
Github:
https://github.com/lbdyck------------------------------