@Boldline The lasso indicator (line) style will be changed. The problem with the blue circle is that there are two functions activated by the Option (Alt) key in this case (again collision of too many features on modifier keys).
One is the lasso tool, the other is a intersection join and segment erase tool. This other tool works when clicking at an intersection location of two open paths, where the smaller endings are removed and the open paths are joined at the intersection.
I will have to find a better way to accommodate both tools, I'm open to suggestions.