[BUG] Can't see what I'm typing in "Type here to tell Claude what to do differently"

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 am using the CLI. When I am presented with this prompt

 Do you want to create **/tmp/file** ?
 ❯ 1. Yes
   2. Yes, allow all edits in tmp/ during this session (shift+tab)
   3. Type here to tell Claude what to do differently

... if I move the cursor down to 3 and start typing in an instruction, my cursor disappears after a few words and I end up typing in the blind. It still accepts my input, but it's impossible to see whether I made any typos or where I stopped typing if I'm interrupted while entering text.

What Should Happen?

I should see what I'm typing. Weirdly it wraps to the next line and lets me see the first couple of characters but then masks out the rest with an ellipsis. At the very least, it should allow the full line to be used to display my input before truncating it and masking it with an ellipsis. A much better solution would be to hide the _beginning_ of the text I am entering, so that I can see the part where I am currently writing input. A better solution still would be to jump out into a different mode where I can type in a larger amount of text with the regular amount of control over my input.

Error Messages/Logs

Do you want to proceed?
   1. Yes
  2. Yes, and don't ask again for cat commands in /tmp
  3. Actually I want you to go ahead but I am also testing this "tell Claude wha…
 ❯

 Esc to exit

Steps to Reproduce

I don't know what exactly controls when Claude offers this prompt vs. the old-style "No, and tell Claude what to do differently (esc)" which still works fine as far as I can tell.

Claude Model

Sonnet (default)

Is this a regression?

I don't know

Last Working Version

_No response_

Claude Code Version

2.0.56

Platform

AWS Bedrock

Operating System

macOS

Terminal/Shell

Terminal.app (macOS)

Additional Information

I don't know whether this is a regression. I don't think I have seen this alternate prompt until recently (the "type here" variant); the old "No, and tell Claude what to do differently" still works fine when you get that.