[BUG] Terminal Rendering Issue

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?

This is making it almost unusable. It's rendering like this in PowerShell and the terminal in Cursor.

<img width="1102" height="1210" alt="Image" src="https://github.com/user-attachments/assets/62cdc7d0-4046-4522-b9e8-f1cbaa76dbb9" />

What Should Happen?

The terminal should render correctly.

Error Messages/Logs

Steps to Reproduce

1. Open Claude Code.
2. Use it like normal.
3. Watch the terminal rendering fall apart.

Claude Model

Opus

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

2.1.23

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

PowerShell

Additional Information

_No response_