I think TUI's are popular because they're easier to make than a GUI. They are much more constrained. A TUI is basically a wire frame with some colours, whereas with a GUI the wireframe is only the first step.
In contrast, most TUI toolkits generally require the developer to wire things up manually. Maximum developer flexibility, but with a decent learning curve. Having an LLM available to handle the initial wiring definitely speeds things up.
I know I had a few long lasting bugs with a TUI I wrote years ago that Claude was able to find the fix for pretty quickly. These were bugs that weren’t obvious to me, partially due to the arcane nature of working within a TUI.