[Shell] "Execute Shell Command" does not run in Terminal although option is checked

Extension

https://www.raycast.com/asubbotin/shell

Raycast Version

1.103.10

macOS Version

26.1

Description

The "Execute Shell Command" action works correctly inside Raycast. However, when "Run in Terminal" is enabled in the extension settings, the command still executes inside Raycast instead of opening Terminal.app.
Additionally, using Cmd+K → "Run in Terminal" does nothing at all — Terminal.app doesn't open, no error is shown, and no command is executed.
Raycast has the necessary permissions (System Settings → Privacy & Security → Automation) and Terminal.app works fine when opened manually.

Steps To Reproduce

Open "Excecute Shell Command" action with hotkey

Type a simple command like echo test

Either: check "Run in Terminal" in settings and execute, OR use Cmd+K → "Run in Terminal"

Nothing happens — command runs in Raycast or doesn't run at all

Current Behaviour

Current Behavior: Setting is ignored; command runs in Raycast or doesn't run at all

Expected Behaviour

Expected Behavior: Terminal.app opens and executes the command

Start with the linked Shell extension and trace the “Execute Shell Command” action, its “Run in Terminal” setting, and the Cmd+K action. Reproduce both paths with echo test; done means Terminal.app opens and executes the command in both cases.