[BUG] VS Code Terminal - Claude Code sluggish when typing

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?

When I type into Claude code cli that is opened within a vscode terminal, it takes a second for any keystroke I type to actually type out on the screen. I could type 4 letters one after the other, but they would type out 1 at a time and take 10 seconds to get all 4 characters to type out. This is not a system resource issue, not other software input has this issue (as i type this bug the keyboard is acting fine), only the Claude cli input while in vscode. The claude CLI from a regular terminal window types just fine.

What Should Happen?

The interface should instantly react to my keyboard, it should not take. 2 or 3 seconds to delete a character.

Error Messages/Logs

Steps to Reproduce

Open VSCode on MAC M Chip
Start new Terminal Window
Open Claude CLI by typing: claude
Start tying words: The input should not "catch up" to all the letters i just typed.

Claude Model

Sonnet (default)

Is this a regression?

Yes, this worked in a previous version

Last Working Version

2.0.71

Claude Code Version

2.0.72

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

VS Code integrated terminal

Additional Information

_No response_