Performance Degradation in Claude VSCode Extension with Long Prompts

Bug Description
Once a prompt starts to get fairly long - about 20 lines or so - claude code starts glitching out (scrolling through the entire conversation once for EVERY time a single keyboard-input is made into the terminal. typing words makes this refresh over and over and over. Sometimes the problem goes away and the prompt is stable again, but other times it had caused VScode to completely shutdown without wrning - causing me to lose work and the whole conversation with claude - meaning i have to start up the context allll over again. It's a huge problem :(

Environment Info

• Platform: macos
• Terminal: vscode
• Version: 1.0.6
• Feedback ID: bc85ae89-1193-4afc-b131-b7072d73fe3a

Errors

[{"error":"Error: Command failed: security find-generic-password -a $USER -w -s \"Claude Code\"\nsecurity: SecKeychainSearchCopyNext: The specified item could not be found in the keychain.\n\n    at genericNodeError (node:internal/errors:983:15)\n    at wrappedFn (node:internal/errors:537:14)\n    at checkExecSyncError (node:child_process:882:11)\n    at execSync (node:child_process:954:15)\n    at tG (file:///usr/local/lib/node_modules/@anthropic-ai/claude-code/cli.js:644:3921)\n    at file:///usr/local/lib/node_modules/@anthropic-ai/claude-code/cli.js:572:6758\n    at Q (file:///usr/local/lib/node_modules/@anthropic-ai/claude-code/cli.js:532:16886)\n    at oR1 (file:///usr/local/lib/node_modules/@anthropic-ai/claude-code/cli.js:572:5777)\n    at GG (file:///usr/local/lib/node_modules/@anthropic-ai/claude-code/cli.js:572:5406)\n    at PU2 (file:///usr/local/lib/node_modules/@anthropic-ai/claude-code/cli.js:1976:21167)","timestamp":"2025-06-01T19:20:32.170Z"}]