[BUG] File suggestions with @ stopped working for large directories after update

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?

Description

After updating Claude Code to the latest version, the @ file suggestion feature stopped working for large directories. Previously, it worked correctly for all directories in my workspace.

What Should Happen?

File suggestions should work for all directories, as it did before the update.

Error Messages/Logs

Steps to Reproduce

1. Have a workspace with multiple directories of varying sizes
2. Update Claude Code to latest version
3. Try to use @ to navigate to files in a large directory

Claude Model

Opus

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

2.0.76

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

PowerShell

Additional Information

Environment

• OS: Windows 11
• Claude Code Version: (current latest - updated on 2024-12-30)
• Previous behavior: Working correctly before today's update

Additional Context

• This is a regression - the same workspace and directories worked correctly before the update
• The large directory contains an Angular project with typical structure (src/, node_modules/ excluded via .claudeignore)
• .claudeignore is configured to exclude node_modules/, dist/, .git/, etc.