[BUG] "Set up auto mode for your environment?" dialog is uncompletable: Enter toggles the checkbox instead of submitting and arrow keys never reach Continue

Summary

The "Set up auto mode for your environment?" dialog cannot be completed with the keyboard. Enter toggles the focused checkbox instead of activating Continue, and Up/Down do not move focus, so Continue is unreachable by any key. The only working exit is Esc, which cancels — so the setup can never be submitted and the dialog re-offers indefinitely.

The dialog's own footer hint (Enter to continue) contradicts its actual behaviour.

Environment

• Claude Code 2.1.235
• macOS (Darwin 25.6.0), Apple Silicon
• "tui": "fullscreen" in ~/.claude/settings.json
• Terminal: Claude Code CLI in a standard macOS terminal

Steps to reproduce

1. Start Claude Code in a project directory and let the auto-mode setup prompt appear.
2. The dialog renders with focus (>) on a checkbox row:

Set up auto mode for your environment?

Claude Code reads this project, your recent Claude sessions, and optionally your shell
history and other repositories. Claude analyzes this data and customizes auto mode to
make better decisions.

   How you use Claude here    < Mixed >
 > Also scan shell history       [v]
   Also scan your other repos    [ ]

   Continue

 <-/-> to change usage - Enter to continue - Esc to cancel

1. Press Down (or Up) to try to move focus to Continue.
2. Press Enter.

Expected

• Up/Down move focus between the three option rows and the Continue button.
• Enter on Continue submits the configuration; some other key (conventionally Space) toggles a checkbox.

Actual

• Up/Down do nothing — focus never leaves the checkbox rows and Continue can never be focused.
• Enter toggles the focused checkbox rather than submitting.
• Esc cancels the whole dialog.
• Result: the dialog has no completion path, and it re-appears on subsequent sessions.

Supporting evidence

Consistent with the dialog never being completable, ~/.claude.json contains the adjacent auto-mode flags but no key recording that this environment setup was ever completed:

hasSeenAutoModeEntryWarning       = true
hasSeenAutoDefaultNotice          = true
hasResetAutoModeOptInForDefaultOffer = true

There is no autoMode.environment / completion key present, and no settings.json option that suppresses the prompt, so there is also no workaround short of pressing Esc every time.

Impact

Users who want auto-mode environment customisation cannot opt in at all, and users who do not want it are re-prompted every session with no way to dismiss it permanently. This has been hit repeatedly across many sessions on this machine.

Notes

Possibly related but distinct: #86847 asks what this prompt is (docs), and the /auto-mode-setup slash-command issues (#86778, #87233, #87312) concern the command's data handling rather than this dialog's key handling.