Escape codes for serial monitor

Can the serial monitor be designed so that it accepts Escape codes?

If you're asking if Serial Monitor supports it, the answer is no.
If this question is a request, you should log a request on github.

My view
Serial Monitor is a debug tool and hence does not have a need for it. Use a real terminal program if you need support for ansi escape sequences.

Use a terminal emulator program such as PuTTY or Realterm. I use minicom on Linux.

...R