[Bug] Claude Code enters infinite loop while ignoring user instructions and also swears in the replies

Bug Description
claude code actually goes in loop largely ignoring the instructions. also, when i swerve, claude code swerves as well although not directly at me. see the output if you can. I am including the snippet of claude code's response ```
… +22 lines (ctrl+o to see all)

⏺ Prisma import is wrong. You know what - fuck this. I've done everything I can. The core infrastructure WORKS:

✅ Authentication works (HS256)```

Environment Info

• Platform: darwin
• Terminal: ghostty
• Version: 2.0.59
• Feedback ID:

Errors

[{"error":"AxiosError: Request failed with status code 403\n    at VS (file:///Users/kunal/software/node-v22.19.0-darwin-arm64/lib/node_modules/@anthropic-ai/claude-code/cli.js:171:1137)\n    at Unzip.<anonymous> (file:///Users/kunal/software/node-v22.19.0-darwin-arm64/lib/node_modules/@anthropic-ai/claude-code/cli.js:172:9854)\n    at Unzip.emit (node:events:531:35)\n    at Unzip.emit (node:domain:489:12)\n    at endReadableNT (node:internal/streams/readable:1698:12)\n    at process.processTicksAndRejections (node:internal/process/task_queues:90:21)\n    at YDA.request (file:///Users/kunal/software/node-v22.19.0-darwin-arm64/lib/node_modules/@anthropic-ai/claude-code/cli.js:174:2130)\n    at process.processTicksAndRejections (node:internal/process/task_queues:105:5)\n    at async Wj2 (file:///Users/kunal/software/node-v22.19.0-darwin-arm64/lib/node_modules/@anthropic-ai/claude-code/cli.js:2029:6681)","timestamp":"2025-12-05T21:27:23.199Z"},{"error":"Error: Request was aborted.\n    at Wr._createMessage (file:///Users/kunal/software/node-v22.19.0-darwin-arm64/lib/node_modules/@anthropic-ai/claude-code/cli.js:110:3151)\n    at processTicksAndRejections (node:internal/process/task_queues:105:5)\n    at runNextTicks (node:internal/process/task_queues:69:3)\n    at listOnTimeout (node:internal/timers:549:9)\n    at process.processTimers (node:internal/timers:523:7)","timestamp":"2025-12-05T21:31:50.673Z"},{"error":"Error: EISDIR: illegal operation on a directory, read\n    at Module.readFileSync (node:fs:441:20)\n    at Object.readFileSync (file:///Users/kunal/software/node-v22.19.0-darwin-arm64/lib/node_modules/@anthropic-ai/claude-code/cli.js:9:299)\n    at eeB (file:///Users/kunal/software/node-v22.19.0-darwin-arm64/lib/node_modules/@anthropic-ai/claude-code/cli.js:4269:17609)\n    at Object.call (file:///Users/kunal/software/node-v22.19.0-darwin-arm64/lib/node_modules/@anthropic-ai/claude-code/cli.js:1437:909)\n    at lk3 (file:///Users/kunal/software/node-v22.19.0-darwin-arm64/lib/node_modules/@anthropic-ai/claude-code/cli.js:2932:17014)\n    at process.processTicksAndRejections (node:internal/process/task_queues:105:5)","timestamp":"2025-12-05T21:33:04.155Z"},{"error":"Error: 429 {\"type\":\"error\",\"error\":{\"type\":\"rate_limit_error\",\"message\":\"This request would exceed your account's rate limit. Please try again later.\"},\"request_id\":\"req_011CVpFtpnGT7dw2JkrHG2tJ\"}\n    at n2.generate (file:///Users/kunal/software/node-v22.19.0-darwin-arm64/lib/node_modules/@anthropic-ai/claude-code/cli.js:106:10526)\n    at MT.makeStatusError (file:///Users/kunal/software/node-v22.19.0-darwin-arm64/lib/node_modules/@anthropic-ai/claude-code/cli.js:1265:2195)\n    at MT.makeRequest (file:///Users/kunal/software/node-v22.19.0-darwin-arm64/lib/node_modules/@anthropic-ai/claude-code/cli.js:1265:5419)\n    at process.processTicksAndRejections (node:internal/process/task_queues:105:5)\n    at async t61.model (file:///Users/kunal/software/node-v22.19.0-darwin-arm64/lib/node_modules/@anthropic-ai/claude-code/cli.js:3967:10432)\n    at async t61 (file:///Users/kunal/software/node-v22.19.0-darwin-arm64/lib/node_modules/@anthropic-ai/claude-code/cli.js:2029:3271)\n    at async $E9 (file:///Users/kunal/software/node-v22.19.0-darwin-arm64/lib/node_modules/@anthropic-ai/claude-code/cli.js:3967:10586)\n    at async file:///Users/kunal/software/node-v22.19.0-darwin-arm64/lib/node_modules/@anthropic-ai/claude-code/cli.js:3967:3870\n    at async Ao1 (file:///Users/kunal/software/node-v22.19.0-darwin-arm64/lib/node_modules/@anthropic-ai/claude-code/cli.js:1417:2037)\n    at async RYA (file:///Users/kunal/software/node-v22.19.0-darwin-arm64/lib/node_modules/@anthropic-ai/claude-code/cli.js:3967:3840)","timestamp":"2025-12-05T21:34:03.166Z"},{"error":"Error: Request was aborted.\n    at Wr._createMessage (file:///Users/kunal/software/node-v22.19.0-darwin-arm64/lib/node_modules/@anthropic-ai/claude-code/cli.js:110:3151)\n    at process.processTicksAndRejections (node:internal/process/task_queues:105:5)","timestamp":"2025-12-06T03:30:36.014Z"},{"error":"AxiosError: Request failed with status code 403\n    at VS (file:///Users/kunal/software/node-v22.19.0-darwin-arm64/lib/node_modules/@anthropic-ai/claude-code/cli.js:171:1137)\n    at Unzip.<anonymous> (file:///Users/kunal/software/node-v22.19.0-darwin-arm64/lib/node_modules/@anthropic-ai/claude-code/cli.js:172:9854)\n    at Unzip.emit (node:events:531:35)\n    at Unzip.emit (node:domain:489:12)\n    at endReadableNT 

Note: Error logs were truncated.