Summary

• Preserve the TUI mouse-tracking runtime default during config hydration so Dashboard Chat can keep terminal mouse reporting disabled.
• Run the dashboard-embedded TUI in inline/primary-buffer mode and give the browser xterm native scrollback, so wheel scrolling and drag-to-edge text selection work like a normal terminal surface.
• Use a non-virtualized inline transcript pane in inline mode so oversized spacer rows do not pollute xterm scrollback or copied selections.
• Keep native CLI/fullscreen TUI behavior on the existing virtualized alternate-screen path.

Test plan

• git diff --check upstream/main...HEAD — passed
• git diff --check — passed
• scripts/run_tests.sh tests/hermes_cli/test_dashboard_chat_native_scrollback.py tests/hermes_cli/test_web_server.py tests/test_tui_gateway_server.py -q — 314 passed, 184 warnings (existing DeprecationWarning noise)
• cd ui-tui && NODE_ENV= npm test -- --run src/__tests__/useConfigSync.test.ts — 33 passed
• cd ui-tui && NODE_ENV= npm run build — passed
• cd web && npm run build — passed (Vite large chunk warning only)
• cd web && npx eslint src/pages/ChatPage.tsx — 0 errors, 1 existing react-hooks/exhaustive-deps warning

Manual verification

• In Dashboard Chat, mouse selection works inside the visible transcript.
• Dragging the selection beyond the top/bottom edge auto-scrolls the transcript and extends the selection into off-screen history.
• Copying the resulting selection returns the selected transcript text rather than layout spacer rows.

Notes

• This supersedes the earlier native DOM copy event-only approach: the root issue was first restoring native text selection.
• The fix is intentionally scoped to Dashboard Chat's embedded xterm/TUI path; it does not change ordinary CLI fullscreen behavior.