I totally get your frustration with this issue! It’s definitely a limitation when you can’t see terminal output during agent commands but lose agent control when you pop out the terminal.
The best current workaround is adjusting the “Use Preview Box” setting in Settings > Preferences > Terminal. When disabled, responses should stream directly into the terminal instead of using a preview box.
We’ll take your feedback onboard and see how we can improve the inline terminal for the future - thanks for the detailed post!