[BUG] Scrollback not working in SSH terminals (MobaXterm) - alternate screen buffer issue

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?

Since a recent update, I can no longer scroll back to see previous output in the terminal.

I'm using MobaXterm to connect via SSH to a CentOS 7 server. Previously, I could scroll up in my terminal to review earlier
responses and information. Now the scrollback doesn't work - it seems Claude Code is using the alternate screen buffer which
prevents normal terminal scrolling.

What Should Happen?

I should be able to scroll up in the ssh window

Error Messages/Logs

Steps to Reproduce

1. Connect to a Linux server via SSH using MobaXterm
2. Run claude
3. Have a conversation with multiple responses that exceed the terminal height
4. Try to scroll up using the mouse wheel or MobaXterm's scrollbar
5. Result: Cannot scroll back to see previous output - scrollback history is empty/inaccessible

Claude Model

Not sure / Multiple models

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

2.0.51

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

Xterm

Additional Information

<img width="1159" height="849" alt="Image" src="https://github.com/user-attachments/assets/4dc26d00-1a9d-422a-8b3d-fd7f72f8ac0f" />