I'm on a MacBook Pro with macOS Big Sur, and on both the laptop trackpad and with my plugged in USB mouse, the wheel or 2-finger up/down on trackpad, is reported to Emacs when in terminal as mouse-4 and mouse-5. That means that scroll doesn't work in Terminal.app or in iTerm2 on MAC, since mouse-4 and mouse-5 are not bound. In the GUI Mac it works, because it gets reported as wheel-up and wheel-down. My thought is maybe here https://github.com/emacs-mirror/emacs/blob/master/lisp/mwheel.el#L54 there should be an additional check for if its running with a window-system or not? In GNU Emacs 27.2 (build 1, x86_64-apple-darwin18.7.0, NS appkit-1671.60 Version 10.14.6 (Build 18G95)) of 2021-03-27 built on builder10-14.porkrind.org Windowing system distributor 'Apple', version 10.3.2022 System Description: macOS 11.3.1