I use xterm that comes with XQuartz on my macbook. However OSC 52 control sequence doesn't seem to work. Here's how to repro:

1. open xterm
2. in the shell, issue printf '\e]52;c;%s\007' $(printf 'test off' | base64)
3. try to "paste" in somewhere else, e.g., TextEdit

I don't see the text "test off" being copied in TextEdit. So seems my xterm's OSC 52 support is broken.

How can I fix it or further root cause it?

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from these sources, it looks like xterm does support OSC 52:

• What is the difference between the values "off" and "external" for the "set-clipboard" option in Tmux?
• https://github.com/mintty/mintty/issues/258
• https://www.xfree86.org/current/ctlseqs.html