[BUG] Claude output unreadable in powershell

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?

I have been using Claude Code this way for months now and everything has been working fine. Randomly in the middle of a session it started outputting cutoff text and unreadable text with huge blank spaces. I've tried updating Claude Code. I've tried new code sessions, etc. It seems to be impacting everything.

<img width="1115" height="989" alt="Image" src="https://github.com/user-attachments/assets/d88ccf0a-388c-4831-873d-b10d5ac2ff88" />

<img width="1115" height="989" alt="Image" src="https://github.com/user-attachments/assets/335db3e3-6df8-4838-992d-3abb39db8e4c" />

What Should Happen?

I should be able to read the output Claude gives me

Error Messages/Logs

Steps to Reproduce

Use powershell and interact with Claude Code

Claude Model

Opus

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

2.0.74 (Claude Code)

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

PowerShell

Additional Information

_No response_