[BUG] Unusable crashes since v2.0.50

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?

I'm pretty sure everyone's aware of this. Any writes to large files pretty much crash the system. Time taken stops ticking, tokens stop ticking, and you never know if the job is going to complete or not. I can't get any work done without reverting to v2.0.49 and disabling auto updates.

Anthropic needs to formally acknowledge this. I'm not sure how anybody's getting any work done with any version of Claude Code past V2.0.49

What Should Happen?

The harness should not crash. People that pay for the service should be able to get work done with the latest versions. Engineers should not introduce major breaking bugs without formal damage control.

Error Messages/Logs

Steps to Reproduce

1. Make substantial edits to a large file.
2. Watch it crash.

Claude Model

Sonnet (default)

Is this a regression?

Yes, this worked in a previous version

Last Working Version

v2.0.49

Claude Code Version

v2.0.50, v2.0.52, v2.0.52, v2.0.53, v2.0.54, v2.0.55

Platform

Anthropic API

Operating System

Other

Terminal/Shell

VS Code integrated terminal

Additional Information

_No response_