ANSI escape codes displayed as literal text in status bar and output

Issue

ANSI escape codes are being displayed as literal text instead of being rendered with colors in both the status bar and command outputs.

Environment

• Terminal: iTerm2
• OS: macOS (Darwin 25.0.0)
• TERM variable: xterm-256color (correctly configured)
• Model: claude-sonnet-4-5-20250929

Reproduction

1. Observe the status bar - it shows literal escape codes like \033[38;5;242m instead of rendering colored text
2. Run commands that output ANSI colors - the escape codes appear as text

Example

Status bar displays:

flow \033[38;5;242mflow-467-clienterror-the-file-size-of-gsabstraction-temp*\033[0m Sonnet 4.5

Should display the branch name in gray, but shows raw escape codes instead.

Expected Behavior

ANSI escape codes should be rendered as colors/formatting, not displayed as literal text.

Notes

iTerm2 supports 256-color ANSI codes correctly. The issue is specific to Claude Code's rendering.