diff --git a/packages/cli/src/test-utils/mockConfig.ts b/packages/cli/src/test-utils/mockConfig.ts
index e1505df970..cbf24c7838 100644
--- a/packages/cli/src/test-utils/mockConfig.ts
+++ b/packages/cli/src/test-utils/mockConfig.ts
@@ -193,6 +193,17 @@ export function createMockSettings(
     user: { settings: {} },
     workspace: { settings: {} },
     errors: [],
+    subscribe: vi.fn().mockReturnValue(() => {}),
+    getSnapshot: vi.fn().mockReturnValue({
+      system: { settings: {} },
+      systemDefaults: { settings: {} },
+      user: { settings: {} },
+      workspace: { settings: {} },
+      isTrusted: true,
+      errors: [],
+      merged,
+    }),
+    setValue: vi.fn(),
     ...overrides,
     merged,
   } as unknown as LoadedSettings;
diff --git a/packages/cli/src/test-utils/render.tsx b/packages/cli/src/test-utils/render.tsx
index 3234498a28..a5737f6961 100644
--- a/packages/cli/src/test-utils/render.tsx
+++ b/packages/cli/src/test-utils/render.tsx
@@ -16,7 +16,7 @@ import { vi } from 'vitest';
 import stripAnsi from 'strip-ansi';
 import type React from 'react';
 import { act, useState } from 'react';
-import { LoadedSettings } from '../config/settings.js';
+import type { LoadedSettings } from '../config/settings.js';
 import { KeypressProvider } from '../ui/contexts/KeypressContext.js';
 import { SettingsContext } from '../ui/contexts/SettingsContext.js';
 import { ShellFocusContext } from '../ui/contexts/ShellFocusContext.js';
@@ -608,20 +608,24 @@ export const renderWithProviders = async (
     uiState: providedUiState,
     width,
     mouseEventsEnabled = false,
-    useAlternateBuffer: explicitUseAlternateBuffer,
     config,
     uiActions,
+    toolActions,
     persistentState,
     appState = mockAppState,
   }: {
     shellFocus?: boolean;
-    settings?: LoadedSettings | Partial<LoadedSettings['merged']>;
+    settings?: LoadedSettings;
     uiState?: Partial<UIState>;
     width?: number;
     mouseEventsEnabled?: boolean;
-    useAlternateBuffer?: boolean;
     config?: Config;
     uiActions?: Partial<UIActions>;
+    toolActions?: Partial<{
+      isExpanded: (callId: string) => boolean;
+      toggleExpansion: (callId: string) => void;
+      toggleAllExpansion: (callIds: string[]) => void;
+    }>;
     persistentState?: {
       get?: typeof persistentStateMock.get;
       set?: typeof persistentStateMock.set;
@@ -658,34 +662,15 @@ export const renderWithProviders = async (
 
   const terminalWidth = width ?? baseState.terminalWidth;
 
-  const finalSettings =
-    settings instanceof LoadedSettings
-      ? settings
-      : createMockSettings(settings || {});
-
   if (!config) {
     config = await loadCliConfig(
-      finalSettings.merged,
+      settings.merged,
       'random-session-id',
-      {} as CliArgs,
+      {} as unknown as CliArgs,
       { cwd: '/' },
     );
   }
 
-  const useAlternateBuffer =
-    explicitUseAlternateBuffer ??
-    finalSettings.merged.ui?.useAlternateBuffer ??
-    false;
-
-  const finalConfig = new Proxy(config, {
-    get(target, prop) {
-      if (prop === 'getUseAlternateBuffer') {
-        return () => useAlternateBuffer;
-      }
-      return Reflect.get(target, prop);
-    },
-  });
-
   const mainAreaWidth = providedUiState?.mainAreaWidth ?? terminalWidth;
 
   const finalUiState = {
@@ -714,8 +699,8 @@ export const renderWithProviders = async (
 
   const wrapWithProviders = (comp: React.ReactElement) => (
     <AppContext.Provider value={appState}>
-      <ConfigContext.Provider value={finalConfig}>
-        <SettingsContext.Provider value={finalSettings}>
+      <ConfigContext.Provider value={config}>
+        <SettingsContext.Provider value={settings}>
           <UIStateContext.Provider value={finalUiState}>
             <VimModeProvider>
               <ShellFocusContext.Provider value={shellFocus}>
@@ -726,11 +711,18 @@ export const renderWithProviders = async (
                     <UIActionsContext.Provider value={finalUIActions}>
                       <OverflowProvider>
                         <ToolActionsProvider
-                          config={finalConfig}
+                          config={config}
                           toolCalls={allToolCalls}
-                          isExpanded={vi.fn().mockReturnValue(false)}
-                          toggleExpansion={vi.fn()}
-                          toggleAllExpansion={vi.fn()}
+                          isExpanded={
+                            toolActions?.isExpanded ??
+                            vi.fn().mockReturnValue(false)
+                          }
+                          toggleExpansion={
+                            toolActions?.toggleExpansion ?? vi.fn()
+                          }
+                          toggleAllExpansion={
+                            toolActions?.toggleAllExpansion ?? vi.fn()
+                          }
                         >
                           <AskUserActionsProvider
                             request={null}
@@ -855,7 +847,7 @@ export async function renderHookWithProviders<Result, Props>(
     wrapper?: React.ComponentType<{ children: React.ReactNode }>;
     // Options for renderWithProviders
     shellFocus?: boolean;
-    settings?: LoadedSettings | Partial<LoadedSettings['merged']>;
+    settings?: LoadedSettings;
     uiState?: Partial<UIState>;
     width?: number;
     mouseEventsEnabled?: boolean;
diff --git a/packages/cli/src/ui/components/messages/ToolGroupMessage.compact.test.tsx b/packages/cli/src/ui/components/messages/ToolGroupMessage.compact.test.tsx
index 188c037641..659ae48bbf 100644
--- a/packages/cli/src/ui/components/messages/ToolGroupMessage.compact.test.tsx
+++ b/packages/cli/src/ui/components/messages/ToolGroupMessage.compact.test.tsx
@@ -5,6 +5,7 @@
  */
 
 import { renderWithProviders } from '../../../test-utils/render.js';
+import { createMockSettings } from '../../../test-utils/mockConfig.js';
 import { ToolGroupMessage } from './ToolGroupMessage.js';
 import {
   CoreToolCallStatus,
@@ -13,7 +14,6 @@ import {
 } from '@google/gemini-cli-core';
 import { expect, it, describe } from 'vitest';
 import type { IndividualToolCallDisplay } from '../../types.js';
-import type { LoadedSettings } from '../../../config/settings.js';
 
 describe('ToolGroupMessage Compact Rendering', () => {
   const defaultProps = {
@@ -27,14 +27,13 @@ describe('ToolGroupMessage Compact Rendering', () => {
     terminalWidth: 80,
   };
 
-  const compactSettings: LoadedSettings = {
+  const compactSettings = createMockSettings({
     merged: {
       ui: {
         compactToolOutput: true,
       },
     },
-    sources: [],
-  } as unknown as LoadedSettings; // Test mock of settings
+  });
 
   it('renders consecutive compact tools without empty lines between them', async () => {
     const toolCalls: IndividualToolCallDisplay[] = [