Markdown links not converted to OSC 8 hyperlinks — trailing ) appended to URL on click

[indeherb]

Describe the bug

When Copilot CLI renders markdown text links in responses, they are not converted to proper OSC 8 terminal hyperlinks. The raw URL is exposed as plain text,
causing terminal emulators (e.g. WezTerm) to apply their own URL auto-detection — which captures the trailing ) from the markdown syntax as part of the URL. Every clicked link opens the
browser with ) appended, requiring manual correction.

Affected version

v1.0.5

Steps to reproduce the behavior

1. Ask Copilot CLI anything that produces a markdown link in the response
2. Observe text format in the output
3. Ctrl+click the URL in the terminal
4. Browser opens with ) appended — e.g. Diff highlights entire line now instead of just the changed text #1813)

Expected behavior

Markdown text links should be emitted as OSC 8 terminal hyperlinks — the terminal displays a clean clickable label, the raw ) is never exposed to the terminal's
URL detector.

Additional context

• OS: Windows 11
• Terminal: WezTerm
• Shell: PowerShell (pwsh)
• Related: Support OSC 8 terminal hyperlinks in MCP progress notification messages #1837 — same root cause (CLI not emitting OSC 8), but scoped to MCP progress messages
• See also: [Bug] Diff highlight colors (added/removed text) broken in v0.0.421 — unreadable on dark terminals #1818, Diff highlights entire line now instead of just the changed text #1813 — part of a broader rendering pipeline gap pattern in recent versions

[jeffbearer]

Still reproducing on v1.0.24 in Windows Terminal + WSL2 (Ubuntu).

When the model outputs [text](url), the CLI renders "text" with ANSI blue + underline styling but the URL is not accessible — no OSC 8 sequences are emitted. Confirmed by inspecting the compiled binary: it contains ANSI underline codes ([4, 24]) but zero references to terminal-link, supports-hyperlinks, or OSC 8 escape patterns.

The result is blue underlined text that looks like a hyperlink but isn't one — the URL is silently discarded. Windows Terminal fully supports OSC 8, so this is a CLI rendering gap, not a terminal limitation.

Workaround: Custom instructions telling the model to never use markdown link syntax and always output raw URLs in label: URL format. This is unreliable since the model frequently reverts to [text](url).

Would love to see OSC 8 support with supports-hyperlinks-style terminal detection, falling back to text (URL) for unsupported terminals.