Turn on Mouse Reporting in Terminal on Mac
The Allow Mouse Reporting option controls whether mouse events are reported. By default, each new Terminal window has the Allow Mouse Reporting option selected.
When Allow Mouse Reporting is selected in Terminal and mouse reporting is enabled in an app running in Terminal, mouse events are reported to that app. If Allow Mouse Reporting is not selected in Terminal, mouse events are not reported, even if an application enables mouse reporting.
This option does not enable mouse reporting behaviour, it just controls whether mouse reporting is allowed. Mouse reporting is enabled in an app, such as Vim, that runs in a Terminal window. In general, mouse reporting is not enabled in apps by default. For example, to enable mouse reporting in Vim, you need to add a set mouse=a command to your ~/.vimrc file.
In the Terminal app
on your Mac, choose View > Allow Mouse Reporting.
A tick next to the option lets you know that it’s selected.