[BUG] Shift+Enter keybinding doesn't add a new line, but starts the prompt

Preflight Checklist

• [x] I have searched existing issues and this hasn't been reported yet
• [x] This is a single bug report (please file separate reports for different bugs)
• [x] I am using the latest version of Claude Code

What's Wrong?

When I press Shift+Enter the prompt immediately starts, but previously this keybinding started a new line (multiline).

What Should Happen?

Shift+Enter should add a new line.

Error Messages/Logs

/terminal-setup command was invoked earlier.

keybindings.json has:

    {
        "key": "shift+enter",
        "command": "workbench.action.terminal.sendSequence",
        "args": {
            "text": "\^[\r"
        },
        "when": "terminalFocus"
    },

Steps to Reproduce

1. Write some text "I need to do the following:"
2. Press Shift+Enter to continue the list.
3. Claude starts with just "I need to do the following:" prompt

Claude Model

Sonnet (default)

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

2.0.37

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

Terminal.app (macOS)

Additional Information

Tested both in:

• Cursor
• Macos terminal