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> For years I've wanted to be able to drop to a shell in vim and visually cut/paste the window.

NeoVim is 100% compatible and has a pretty decent terminal buffer with full (read-only) Vim controls. Nowadays I prefer running it in a terminal multiplexer though.

Emacs' terminal mode doesn't have ncurses support which leads to pretty much all interactive terminal applications to break.

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There are a few shell modes in Emacs. I think ansi-term might do what you want for a full screen interactive terminal application.

I tried all 3 terminals I could find and none works. Apparently they all use the same ancient base that was developed before interactive terminal UIs were a thing.

ncurses programs absolutely do work with ansi-term, which is a terminal emulator. They don't work with eshell, which is not a terminal emulator.

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