If you go into settings you can switch stdin echo on/off. I have stdio devices set up to return their file type as "Character Device" (see: https://github.com/taybenlor/runno/blob/main/packages/wasi-m...). It seems like some binaries handle this well and act like they are directly connected to the TTY (e.g. my quickjs example). Not sure how they determine that. I'm very much coming at this from a web-developer interested in WASI direction, and not from any experience with OSes or linux.
Edit: btw my WASI runtime (@runno/wasi-motor) is very much in "I haven't even released it as an NPM package" state but you're welcome to copy the code and use it https://github.com/taybenlor/runno/tree/main/packages/wasi-m...