for me, an automatic transition would be a good idea, because it enhances the feeling of exploration (and not being held by the hand). If a discrete visual indicator (like the green blob or a substitute) for scene changes is there, I don't think people will accidentally leave a location as they can clearly see where it ends. I find it a very good idea to make the name of the location appear on the screen itself and then slowly fade away. It makes the whole experience much more "dynamic" and authentic without a "press y or n"-window in my opinion.
I know and own Teudogar for years! I played both paths and liked the game for what it is but found it extremely short and a bit disappointing, to be honest. Maybe we've already met in the RPGCodex-forums? I regularly visit the thread over there to mourn about the (now obviously lost) Darghul-remake. :)
edit: Just checked. Well, "regularly" is a relative term - I noticed my last visit was back in 2017. ;)