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[BUG] Arrow keys not working in the CLI version installed with extension. #1876

@prakhar-2021

Description

@prakhar-2021

Bug Report: Arrow keys not working in CLI v0.286.0 installed with databricks extension v2.10.6(latest).

Describe the bug
The Databricks CLI version v0.286.0 installed via the VS Code extension has a regression where arrow keys are non-functional in the terminal. This makes it impossible to navigate interactive prompts, select templates during initialization, or pick specific workspaces from a list.

To Reproduce
Steps to reproduce the behavior:

  1. Open VS Code.
  2. Open a new terminal and run databricks bundle init (or any command requiring an interactive selection).
  3. Attempt to scroll through the list using the Up or Down arrow keys.
  4. Observe that the selection remains stuck on the first item and does not respond to keyboard input.

Screenshots
n/a

System information:

  1. Databricks Extension Version:
    v2.10.6
  2. VS Code Versoin:
    v1.115.0(user setup)

Databricks Extension Logs
n/a

Additional context
This is a confirmed upstream issue with the Databricks CLI binary (specifically versions v0.286.0 and v0.287.0). The issue is tracked here: databricks/cli#4481. Because the extension automatically manages the CLI version, users are locked into this broken behavior. An update to the extension to include CLI v0.288.0+ is necessary to resolve this.

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