[Bug] Terminal output flashing and auto-scrolling with insufficient height in VSCode

Bug Description
I have this weird bug that if I use claude code in the temrminalwithin VSCode, under the code section, it start to flash and behave weirdly like scrolling up and down if the terminal window does not have enough heihgt

Environment Info

• Platform: darwin
• Terminal: vscode
• Version: 2.0.70
• Feedback ID: 76b11d42-8761-4ea7-9f7d-8c0d2b8d3e9b

Errors

[{"error":"Error\n    at ab (/$bunfs/root/claude:59:1143)\n    at <anonymous> (/$bunfs/root/claude:60:10084)\n    at emit (node:events:92:22)\n    at endReadableNT (internal:streams/readable:861:50)\n    at processTicksAndRejections (native:7:39)\n    at request (/$bunfs/root/claude:62:2147)\n    at processTicksAndRejections (native:7:39)","timestamp":"2025-12-17T08:43:46.506Z"},{"error":"Error: NON-FATAL: Lock acquisition failed for /Users/valerio/.local/share/claude/versions/2.0.70 (expected in multi-process scenarios)\n    at K$R (/$bunfs/root/claude:2346:2155)\n    at qDA (/$bunfs/root/claude:2346:1875)\n    at processTicksAndRejections (native:7:39)","timestamp":"2025-12-17T08:43:46.549Z"},{"error":"Error\n    at ab (/$bunfs/root/claude:59:1143)\n    at <anonymous> (/$bunfs/root/claude:60:10084)\n    at emit (node:events:92:22)\n    at endReadableNT (internal:streams/readable:861:50)\n    at processTicksAndRejections (native:7:39)\n    at request (/$bunfs/root/claude:62:2147)\n    at processTicksAndRejections (native:7:39)","timestamp":"2025-12-17T08:43:47.955Z"},{"error":"AbortError: The operation was aborted.\n    at unknown\n    at abortChildProcess (node:child_process:935:42)\n    at onAbortListener2 (node:child_process:35:24)\n    at abort (unknown)\n    at <anonymous> (/$bunfs/root/claude:4808:14351)","timestamp":"2025-12-17T08:43:49.135Z"},{"error":"Error: EISDIR: illegal operation on a directory, read\n    at readSync (unknown)\n    at <anonymous> (/$bunfs/root/claude:12:724)\n    at E3 (/$bunfs/root/claude:11:8454)\n    at readSync (/$bunfs/root/claude:12:627)\n    at t5 (/$bunfs/root/claude:4585:113)\n    at R5 (/$bunfs/root/claude:4587:206)\n    at yoD (/$bunfs/root/claude:2019:6496)\n    at yoD (/$bunfs/root/claude:2019:7382)\n    at h (/$bunfs/root/claude:2019:5701)\n    at h (/$bunfs/root/claude:2019:5997)","timestamp":"2025-12-17T10:44:42.646Z"},{"error":"Error: EISDIR: illegal operation on a directory, read\n    at readFileSync (unknown)\n    at <anonymous> (/$bunfs/root/claude:12:500)\n    at E3 (/$bunfs/root/claude:11:8454)\n    at readFileSync (/$bunfs/root/claude:12:465)\n    at R5 (/$bunfs/root/claude:4587:231)\n    at yoD (/$bunfs/root/claude:2019:6496)\n    at yoD (/$bunfs/root/claude:2019:7382)\n    at h (/$bunfs/root/claude:2019:5701)\n    at h (/$bunfs/root/claude:2019:5997)\n    at <anonymous> (/$bunfs/root/claude:2019:6030)","timestamp":"2025-12-17T10:44:42.701Z"},{"error":"Error: EISDIR: illegal operation on a directory, read\n    at readSync (unknown)\n    at <anonymous> (/$bunfs/root/claude:12:724)\n    at E3 (/$bunfs/root/claude:11:8454)\n    at readSync (/$bunfs/root/claude:12:627)\n    at t5 (/$bunfs/root/claude:4585:113)\n    at R5 (/$bunfs/root/claude:4587:206)\n    at yoD (/$bunfs/root/claude:2019:6496)\n    at yoD (/$bunfs/root/claude:2019:7382)\n    at h (/$bunfs/root/claude:2019:5701)\n    at h (/$bunfs/root/claude:2019:5997)","timestamp":"2025-12-17T10:46:24.513Z"},{"error":"Error: EISDIR: illegal operation on a directory, read\n    at readFileSync (unknown)\n    at <anonymous> (/$bunfs/root/claude:12:500)\n    at E3 (/$bunfs/root/claude:11:8454)\n    at readFileSync (/$bunfs/root/claude:12:465)\n    at R5 (/$bunfs/root/claude:4587:231)\n    at yoD (/$bunfs/root/claude:2019:6496)\n    at yoD (/$bunfs/root/claude:2019:7382)\n    at h (/$bunfs/root/claude:2019:5701)\n    at h (/$bunfs/root/claude:2019:5997)\n    at <anonymous> (/$bunfs/root/claude:2019:6030)","timestamp":"2025-12-17T10:46:24.513Z"},{"error":"Error: EISDIR: illegal operation on a directory, read\n    at readSync (unknown)\n    at <anonymous> (/$bunfs/root/claude:12:724)\n    at E3 (/$bunfs/root/claude:11:8454)\n    at readSync (/$bunfs/root/claude:12:627)\n    at t5 (/$bunfs/root/claude:4585:113)\n    at R5 (/$bunfs/root/claude:4587:206)\n    at yoD (/$bunfs/root/claude:2019:6496)\n    at yoD (/$bunfs/root/claude:2019:7382)\n    at h (/$bunfs/root/claude:2019:5701)\n    at h (/$bunfs/root/claude:2019:5997)","timestamp":"2025-12-17T10:46:24.840Z"},{"error":"Error: EISDIR: illegal operation on a directory, read\n    at readFileSync (unknown)\n    at <anonymous> (/$bunfs/root/claude:12:500)\n    

Note: Error logs were truncated.