[BUG] Shift+Space inserts literal word "space" instead of space character

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?

Environment:

• Claude Code version: 2.1.2
• macOS: Darwin 25.2.0
• Terminal: iTerm2

Issue:
Pressing Shift+Space inserts the literal string "space" (5 characters)
instead of a space character.

Confirmed NOT the cause:

• Works correctly in /bin/cat -v (outputs normal space)
• No macOS Text Replacements for space
• No tmux Shift+Space binding
• No iTerm2 Shift+Space keybinding
• macOS Input Sources shortcuts disabled

Started: After updating Claude Code to 2.1.2

What Should Happen?

Pressing Shift+Space should insert a single space character (identical to
pressing Space without Shift), as it does in all other terminal applications
and as confirmed by testing with /bin/cat -v.

Error Messages/Logs

No error messages. The issue is silent - the wrong text is simply inserted.

Steps to Reproduce

1. Open Claude Code in iTerm2
2. Start typing in the input prompt
3. Press Shift+Space (hold Shift, then press Spacebar)
4. Observe that the word "space" is inserted instead of a space character

Claude Model

Opus

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

2.1.2 (Claude Code)

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

iTerm2

Additional Information

_No response_