My project uses gradle wrapper and I am running gradle from git bash. I am not seeing nice status line.
What am I missing?
An up-to-date Gradle version. 
Older Gradle versions did not detect Git Bash and similar properly and so have this garbled output.
You can force plain console which will prevent the garbled output but also not show the progress in percent and so on.
The better solution is to update the Gradle version of the project to a recent version where this majorly improved and properly works also in Git Bash.
Another work-around solution is, to not use Git Bash, but for example cmd to execute Gradle.