[BUG] File path autocomplete displays Chinese characters as octal escape sequences in v2.0.73

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 using the @ symbol to reference files in Claude Code CLI, file paths containing Chinese characters are displayed as octal escape sequences instead of the actual Chinese characters in the autocomplete dropdown list.

For example, a file path like:
中文文字檔案.pdf

Is displayed as:
\344\270\255\346\226\207\345\255\227\346\252\224\346\241\210.pdf

What Should Happen?

File paths should display Chinese characters properly in the autocomplete dropdown list, making it easy to identify and select the correct file.

Error Messages/Logs

Steps to Reproduce

1. Navigate to a project directory containing files or folders with Chinese characters in their paths
2. Type @ in the Claude Code prompt to trigger file reference/autocomplete
3. Observe the file path suggestions in the dropdown list
4. Chinese characters appear as octal escape sequences (e.g., \345\234\221 instead of 國)

Claude Model

Opus

Is this a regression?

Yes, this worked in a previous version

Last Working Version

2.0.72

Claude Code Version

2.0.74

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

Terminal.app (macOS)

Additional Information

• The octal sequences are valid UTF-8 byte representations of Chinese characters

For example: \345\234\221 is the UTF-8 encoding of the character "國"

• File operations work correctly; this is purely a display issue in the autocomplete UI

• This significantly impacts usability for users working with projects that have Chinese filenames or paths

• The issue first appeared in version 2.0.73 and persists through version 2.0.74

• macOS version: Darwin 24.6.0