Thank you both Paul and Rahul. To summarize, after discussing options with the internal Mainframe guys and Uipath support team, we’re left with 2 choices: change the emulator type to something Uipath support or using CV activities.
Both options turned out working. But I’d dive deeper in to the former. Basically, the back-end team had to change the bash setting of the account from WYSE type to VT type. From there, everything with terminal activities worked like a charm. I can iterate between different stages of the sequence: what’s my current screen, what’s the action…until I hit the end screen. Screen recognition are pretty much text-based so choosing the right keywords and the ordering of them during matching matter.