[Bug] Terminal output corruption with long text outputs on Windows PowerShell

Bug Description
Bug Report for Claude Code v2.0.73

Issue: Terminal output corruption with long text outputs
Environment: Windows 10, PowerShell, VS Code
Symptoms:

• Text gets truncated mid-sentence
• Layout breaks with excessive whitespace
• Content appears fragmented ("cation section", "ote")

Reproduction:

1. Run a task that generates >100 lines of output
2. Terminal display becomes corrupted
3. Actual files are correct when viewed with cat or text editor

Screenshot: [attach your first screenshot]
Version: 2.0.73 (Claude Code)

Environment Info

• Platform: win32
• Terminal: vscode
• Version: 2.0.73
• Feedback ID: 6ef72c2b-1b36-4cc5-9a8c-d707a5190923

Errors

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<img width="1512" height="799" alt="Image" src="https://github.com/user-attachments/assets/26b7f72e-0cfd-480e-93be-ac56c1ab1201" />