Terminal output splits words mid-character instead of wrapping at word boundaries

Description

Terminal output wraps at character boundaries instead of word boundaries, causing words to be split mid-character at line breaks. This makes output very difficult to read.

Examples from actual output

• "comes" renders as "come s"
• "encoder" renders as "enc oder"
• "doesn't" renders as "does n't"

Screenshot

!Word splitting example

(I'll attach the actual screenshot in a follow-up comment)

Environment

• Claude Code version: 2.0.76
• OS: macOS 15.1 (Darwin 25.1.0)
• Terminal: Standard macOS terminal environment
• Terminal width: Variable (issue persists across window sizes)

Expected behavior

Text should wrap at word boundaries (spaces, hyphens) rather than splitting words mid-character. Most terminal applications and text renderers implement word-aware wrapping to maintain readability.

Actual behavior

Text wraps at exact character positions regardless of word boundaries, splitting words arbitrarily and significantly reducing readability.

Additional context

• $COLUMNS environment variable shows 0 within Claude Code environment
• tput cols returns 80
• The mismatch may indicate terminal width detection issues, but the core problem is character-based vs word-based wrapping logic

Suggested fix

Implement word-boundary-aware text wrapping in the terminal rendering layer, similar to how text editors and most CLI tools handle line wrapping.