[BUG] Status line spinner creates multiple rows instead of updating in place on Windows Terminal

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?

## Description
The status line spinner (e.g., "Gitifying...", "Reading file...") creates multiple stacked rows instead of overwriting itself in place. Each update adds a new line rather than replacing
the previous one.

## Environment

• OS: Windows 11
• Terminal: Windows Terminal
• $TERM: xterm-256color
• Claude Code version: 2.0.58

## Expected behavior
Status messages should update in place on a single line.

## Actual behavior
Each status update creates a new line, resulting in multiple rows of spinner text stacking up.

What Should Happen?

Edit - AI wrote this more clearer:

Status messages (spinner text like "Reading file...", "Running command...") should update in place on a single line, overwriting the previous message.

Error Messages/Logs

Steps to Reproduce

Edit - AI wrote this more clearer:

1. Open Claude Code in Windows Terminal
2. Run any command that triggers the status spinner (e.g., ask Claude to read a file or run a bash command)
3. Observe the status line - each update creates a new row instead of replacing the previous one

Claude Model

None

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

2.0.58 (Claude Code)

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

Windows Terminal

Additional Information

Attempted fix: Added "disableAllHooks": true to ~/.claude/settings.json but this did not resolve the issue (only affects custom hooks, not the built-in spinner).

Current settings.json:
{
"alwaysThinkingEnabled": true,
"disableAllHooks": true
}

The issue appears to be with the built-in status line rendering, not custom hooks/statusLine configurations.