Also, briefly looking at coracle source I see there is a setting to whether reply to AUTH automatically or not but it seems I’m missing it in settings

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Go to https://coracle.social/settings

There's a authenticate to relays option

Wow, I looked there 3 times and I first seen it in source code but only was able to see it in UI after your post 😂 thanks!

However, this setting seem to have no effect and it does not persist through reloads in any browser: safari, ff, chrome on mac

Did you press the save button at the bottom?

State is persisted in batches, so don't refresh right away