Remove is-interactive, inline the check

The package was a 6-line function checking process.stdout.isTTY,
TERM !== 'dumb', and absence of CI env var. Inline the logic directly
in isTerminalInteractive(). Added 5 tests covering all branches:
TTY + normal term, non-TTY, dumb terminal, CI set, CI empty string.

Co-Authored-By: Claude Opus 4.6 (1M context) <noreply@anthropic.com>

Author: ryancbahan

packages/cli-kit/package.json

@@ -137,7 +137,6 @@
     "ignore": "6.0.2",
     "ink": "6.8.0",
     "is-executable": "2.0.1",
-    "is-interactive": "2.0.0",
     "is-wsl": "3.1.0",
     "jose": "5.9.6",
     "latest-version": "7.0.0",

packages/cli-kit/src/public/node/context/local.test.ts

@@ -4,6 +4,7 @@ import {
   isDevelopment,
   isHostedAppsMode,
   isShopify,
+  isTerminalInteractive,
   isUnitTest,
   analyticsDisabled,
   cloudEnvironment,
@@ -14,12 +15,62 @@ import {
 import {fileExists} from '../fs.js'
 import {exec} from '../system.js'
 
-import {expect, describe, vi, test} from 'vitest'
+import {afterEach, expect, describe, vi, test} from 'vitest'
 
 vi.mock('../fs.js')
 vi.mock('../system.js')
 vi.mock('../environment.js')
 
+describe('isTerminalInteractive', () => {
+  const originalIsTTY = process.stdout.isTTY
+  const originalEnv = {...process.env}
+
+  afterEach(() => {
+    process.stdout.isTTY = originalIsTTY
+    process.env.TERM = originalEnv.TERM
+    if (originalEnv.CI === undefined) {
+      delete process.env.CI
+    } else {
+      process.env.CI = originalEnv.CI
+    }
+  })
+
+  test('returns true when stdout is a TTY, TERM is not dumb, and not in CI', () => {
+    process.stdout.isTTY = true
+    delete process.env.CI
+    process.env.TERM = 'xterm-256color'
+    expect(isTerminalInteractive()).toBe(true)
+  })
+
+  test('returns false when stdout is not a TTY', () => {
+    process.stdout.isTTY = false
+    delete process.env.CI
+    process.env.TERM = 'xterm-256color'
+    expect(isTerminalInteractive()).toBe(false)
+  })
+
+  test('returns false when TERM is dumb', () => {
+    process.stdout.isTTY = true
+    delete process.env.CI
+    process.env.TERM = 'dumb'
+    expect(isTerminalInteractive()).toBe(false)
+  })
+
+  test('returns false when CI env var is set', () => {
+    process.stdout.isTTY = true
+    process.env.CI = 'true'
+    process.env.TERM = 'xterm-256color'
+    expect(isTerminalInteractive()).toBe(false)
+  })
+
+  test('returns false when CI env var is empty string (still set)', () => {
+    process.stdout.isTTY = true
+    process.env.CI = ''
+    process.env.TERM = 'xterm-256color'
+    expect(isTerminalInteractive()).toBe(false)
+  })
+})
+
 describe('isUnitTest', () => {
   test('returns true when SHOPIFY_UNIT_TEST is truthy', () => {
     // Given

packages/cli-kit/src/public/node/context/local.ts

@@ -4,7 +4,6 @@ import {defaultThemeKitAccessDomain, environmentVariables, pathConstants} from '
 import {fileExists} from '../fs.js'
 import {exec} from '../system.js'
 
-import isInteractive from 'is-interactive'
 import macaddress from 'macaddress'
 
 import {homedir} from 'os'
@@ -15,7 +14,7 @@ import {homedir} from 'os'
  * @returns True if the terminal is interactive.
  */
 export function isTerminalInteractive(): boolean {
-  return isInteractive()
+  return Boolean(process.stdout.isTTY && process.env.TERM !== 'dumb' && !('CI' in process.env))
 }
 
 /**