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The configuration is in Terminal Preferences -> Keyboard -> Use Option as Meta key

That works. Thanks! though you have to set it for each terminal type. (I use 3 colors...). It was a little annoying but done.

Try: `esc F` and `esc B` instead of alt.

Highly, highly recommend iTerm2, it’s a great piece of software and there’s really no reason to use the default terminal over it.

There was also the passwords issue discussed here a while back.

Set option to meta in your terminal preferences.

iTerm handles Alt+f/b correctly.