Improving support for rich interactive CLIs in Copilot CLI - AZD

We are seeing several blocking usability issues when running a rich, interactive CLI through Copilot CLI.

Below are the some of the issues which we encountered when using azd CLI,
- Rich text and progress updates are garbled and hard to follow.

Copilot CLI

Native Experience

- Selection prompts/lists are not scrollable and only show 2–3 items at a time.

Copilot CLI

Native Experience

- Shell input/output appears to time out, even though work is still actively progressing in the background.

Copilot CLI

@ellismg @EvanBoyle can you help prioritize this?

@kristenwomack @spboyer @wbreza @tg-msft @petermarcu