Vim nowadays supports your mouse in the terminal. Unfortunately, it interferes when simply selecting text for other purposes. You can disable mouse support in VIM by:
Executing the following one-off command in VIM:
:set mouse=
You can also put the same command in your ~/.vimrc, making it a permanent change:
source $VIMRUNTIME/defaults.vim set mouse=
The source command is required to keep all other defaults in place.