You have two problems in one question.
First, the error message on mouse event in your screenshots is likely to be caused by your configuration, you should try to isolate it by dichotomy (comment out half of your init file, see if the problem still appears, etc.)
Then the fact that
emacs -Q does not provide mouse support. That seems to imply that mouse support needs to be enabled somehow. Several functions for this purpose seem to exist (manual):
xterm-mouse-mode: enables very basic mouse functionality ("only non-modified single-mouse clicks"); as you noticed, it also uses the old menus with
tmm, rather than the new one that appears with
t-mouse-support, alias for
gpm-mouse-support: if your system has gpm running, and if your emacs was compiled with gpm, enable mouse support in the terminal. This is reportedly only for GNU/Linux, it appears to be available for mac if you use X11 (I have no idea how hard to achieve it is).
None of this provides multi-platform, out-of-the-box mouse support. On the other hand, Drew reported that on w32, it works with
emacs -Q. Mouse support indeed seems to be handled differently in w32 consoles.
Given that the manual doesn't seem to mention anything more, I will go with a guess: the "if your terminal supports a mouse" in the news corresponds to having one of the mouse modes enabled (either dos mouse, xterm mouse or gpm mouse). Then the news is not about supporting the mouse out of the box, but rather about having it work for the menus as well.
Why not use a graphical frame?