I can see that mouse tracking has been added to Konsole recently (https://github.com/KDE/konsole/search?q=mouse+tracking&type=commits). Is anything required to get click to position cursor to work with bash?

If it currently is not supported for bash, what would be required to support that feature like in the terminal emulators Kitty and DomTerm?

For example in Kitty, using shell integration https://sw.kovidgoyal.net/kitty/shell-integration/#shell-integration, you can "Click with the mouse anywhere in the current command to move the cursor there" in zsh, fish and bash.