[BUG] Decompression error: ZlibError spamming terminal sessions

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 am getting Decompression error: ZlibError spamming in terminal sessions since upgrading to v2.1.34. This is happening across all terminals, Ghostty, iTerm2, and even VSCode terminal panels, make terminal Claude Code nearly impossible to use. Claude Code extension/panel (not terminal) does not do this.

I found a recent issue posted related to this but it was closed, https://github.com/anthropics/claude-code/issues/18302. The issues linked to that 18302 don't appear to be relevant.

What Should Happen?

It should properly decompress Zlib

Error Messages/Logs

Steps to Reproduce

just open a terminal session and wait a few minutes

Claude Model

None

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

Claude Code v2.1.34

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

VS Code integrated terminal

Additional Information

_No response_