[BUG] Claude code unable to update the files in latest version

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?

Using Claude code and I get the following error every time, it tries to update more than a couple of lines in a file.

>  Error: File has been unexpectedly modified. Read it again before attempting to write it.

It was working fine before updating it to the latest version yesterday. As a workaround, Claude's code tried to come up with a programmatic Python way of updating the files, and that is very messy!

How could Claude release such a version without properly testing it? To me, it's a BLOCKER and i am a MAX customer. Just blocked for my daily development right now.

What Should Happen?

Claude should be able to update the file successfully.

Error Messages/Logs

Error: File has been unexpectedly modified. Read it again before attempting to write it.

Steps to Reproduce

1. Work with claude code in a project. Ask Claude code for some changes. Make sure that the change is bit bigger and encompasses multiple lines.
2. Claude Code will Read the files.
3. Claude Code will come up with "Update" tool calls and updating the files.
4. Get the error "  Error: File has been unexpectedly modified. Read it again before attempting to write it."

Claude Model

Opus

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

2.0.73 (Claude Code)

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

Windows Terminal

Additional Information

_No response_