[Bug] Permission prompt unresponsive to keyboard input on Windows non-home directories

Bug Description
Title: Claude Code v2.0.28 - Permission prompt doesn't accept keyboard input on Windows

Environment:

• OS: Windows 11/10
• Claude Code Version: v2.0.28
• Shell: PowerShell 7.5.4
• Terminal: Windows Terminal

Steps to Reproduce:

1. Navigate to any directory outside of C:\Users\[username] (e.g., D:\sila\Development\trends-universal-etl)
2. Run claude command
3. Permission prompt appears: "Ready to code here? I'll need permission to work with your files."
4. Attempt to type "1" or "2" to respond to prompt
5. Observe that keyboard input is not registered

Expected Behavior:

• User should be able to type "1" or "2" to respond to the permission prompt
• The selection should persist so user doesn't need to approve the same directory repeatedly

Actual Behavior:

• Terminal appears frozen and doesn't accept keyboard input
• VS Code Developer Console shows GitHub extension validation errors when clicking in the terminal area
• Workaround: Press "1" → "Enter" → "Escape" sequence allows bypassing the frozen state
• Approval is NOT saved - prompt reappears every time Claude Code launches in that directory

Additional Context:

• Claude Code works perfectly in C:\Users\[username] (home directory)
• Issue occurs consistently in any directory on D:\ drive or other non-home locations
• No "trustedDirectories" or "allowedPaths" setting found in:
• ~/.claude/settings.json
• {project}/.claude/settings.local.json
• settings.local.json only contains command-specific permissions, not directory-level trust

Workaround:
When prompted, press: "1" + "Enter" + "Escape"

Environment Info

• Platform: win32
• Terminal: vscode
• Version: 2.0.28
• Feedback ID: 315914ea-33b8-4e3a-b9f2-1240d3504569

Errors

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