It's meant as a "yes"/"instead, do ..." question. When it presents you with the multiple choice UI at that point it should be the version where you either confirm (with/without auto edit, with/without context clear) or you give feedback on the plan. Just telling it no doesn't give the model anything actionable to do

It can terminate the current plan where it's at until given a new prompt, or move to the next item on its todo list /shrug