[BUG] Readline `reverse-i-search` (aka C-r) is broken

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?

When using reverse-i-search (i.e. Ctrl-r) you can't then use the cursor keys to edit the text of the prompt; forcing you to either accept either all or none of the text from the search.

What Should Happen?

After finding the text of the prompt from the prompt history it should be possible to edit the prompt in the same way that Readline does.

Error Messages/Logs

N/A; no error and also doesn't work.

Steps to Reproduce

1. at empty prompt type C-r to invoke reverse-i-search (iteratively search the prompt history in reverse order)
2. type some text to find any entry in the prompt history
3. try to use the arrow keys to move the cursor / edit the prompt from the search (which should allow you to edit but in fact does nothing)

Claude Model

Sonnet (default)

Is this a regression?

I don't know

Last Working Version

_No response_

Claude Code Version

2.1.22 (Claude Code)

Platform

Anthropic API

Operating System

Ubuntu/Debian Linux

Terminal/Shell

Xterm

Additional Information

_No response_