I have xterm-mouse-mode enabled when in tty mode on macOS and it does work for clicking/selecting but this is independent of integrating the kill ring with the pasteboard. I am unaware of how to test the completeness of the xterm mouse protocol support, however.

On Thu, Dec 12, 2024 at 2:32 PM Eli Zaretskii <eliz@gnu.org> wrote:
> From: Ship Mints <shipmints@gmail.com>
> Date: Thu, 12 Dec 2024 14:18:47 -0500
> Cc: Filipp Gunbin <fgunbin@fastmail.fm>, 74833@debbugs.gnu.org
>
> It supports a subset of mouse behavior via this user setting:
>
> https://support.apple.com/guide/terminal/turn-on-mouse-reporting-trmlc69728a5/2.12/mac/11.0

That doesn't tell enough.  xterm.el and xterm-mouse assume full
support for the xterm protocols, so partial support could well explain
why things don't work.

In general, I don't recommend turn on xterm features on terminals
other than xterm, unless they are faithful emulations of xterm.