[BUG] /terminal-setup command not working correctly with Windows Terminal

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?

I use Windows Terminal with Windows PowerShell.
When trying to use the /terminal-setup command, I get an error message, which is contradictory because it states both that it cannot be run from windows-terminal and that it's one of the suppported apps.

Terminal Windows
Version: 1.23.13503.0

What Should Happen?

/terminal-setup command should properly allow for using Shift+Enter for new lines.

Error Messages/Logs

❯ /terminal-setup
  ⎿  Terminal setup cannot be run from windows-terminal.

     This command configures a convenient Shift+Enter shortcut for multi-line prompts.
     Note: You can already use backslash ( + return to add newlines.

     To set up the shortcut (optional):
     1. Exit tmux/screen temporarily
     2. Run /terminal-setup directly in one of these terminals:
     • Windows: Windows Terminal
     • IDE: VSCode, Cursor, Windsurf, Zed
     • Other: Alacritty, Warp
     3. Return to tmux/screen - settings will persist

Steps to Reproduce

1. Open Windows Terminal with PowerShell
2. Type claude /terminal-setup

Claude Model

Opus

Is this a regression?

I don't know

Last Working Version

_No response_

Claude Code Version

2.1.5 (Claude Code)

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

Windows Terminal

Additional Information

_No response_