That sounds too complicated and unwieldy, and more importantly, it takes too much time.
What would you do to improve it? It would take less time than prompting players at every possible moment that there could be a reaction and would avoid the MtG game feeling. Since players may choose to not even use their reaction for a whole round, sometimes combat would only get paused one or two times in a whole combat round. So, it seems as though it would take up much less combat time than yes/no prompts every time a reaction could happen. I can't really think of a way to give player's the freedom of choice in the moment and also reduce the amount of combat interruptions any more than this. I'd be happy to hear any further ideas, though, because obviously I'm only one person and don't have a monopoly on ideas.