Interactive mode freezes on non-git directory (Google Drive) since v2.1.25

Bug Description

Claude Code freezes indefinitely in interactive mode when launched from a directory that is not a git repo but contains a subdirectory with a .git repo. The directory is on Google Drive File Stream.

The process shows startup messages like "Gitifying…" or "Channelling…" then hangs at 100% CPU.

Reproduction Steps

1. Have a directory on Google Drive File Stream with this structure:

``
project/ # NOT a git repo
├── app/ # git repo is here
│ ├── .git/
│ ├── node_modules/ (539 MB)
│ └── ...
├── node_modules/ (318 MB)
├── .claude/
└── other dirs...
``

1. cd into the parent project/ directory
2. Run claude --dangerously-skip-permissions
3. Send any message → freezes at "Gitifying…" or "Channelling…" with 100% CPU

Version Comparison

| Version | Interactive TTY | --print mode | Piped input |
|---------|----------------|----------------|-------------|
| 2.1.6 | ✅ Works | ✅ Works | ✅ Works |
| 2.1.25 | ❌ Freezes | ✅ Works | ✅ Works |
| 2.1.27 | ❌ Freezes | ✅ Works | ✅ Works |

Environment

• OS: macOS (Darwin 25.2.0)
• Filesystem: Google Drive File Stream
• Directory: Not a git repo; subdirectory app/ has .git
• Total directory size: ~931 MB (mostly node_modules)
• Plugins enabled: ralph-loop, superpowers (via claude-plugins-official)

Workaround

Pinning to v2.1.6 via shell alias:

alias claude='"$HOME/.local/share/claude/versions/2.1.6"'

Notes

• The freeze only occurs in interactive TTY mode; --print and piped stdin work fine on all versions
• The process consumes 100% CPU when frozen (not waiting on I/O)
• Multiple instances can accumulate if the user retries, each at 100% CPU
• Adding node_modules to .gitignore at the root did not fix the issue