WASI doesn't have an `isatty` ioctl or syscall, so wasi-libc's `isatty` implementation uses the file descriptor type and rights to determine if the file descriptor is likely to be a tty. The real fix here will be to add an `isatty` call to WASI. But for now, have Wasmtime set the filetype and rights for file descriptors so that wasi-libc's `isatty` works as expected.
WASI implementation in Rust, using cap-std.