Shell prompt with ANSI color codes renders as raw escape sequences

Description

When using a custom zsh prompt that includes ANSI color codes (via %{$fg[...]%} sequences), Claude Code's directory/prompt display renders the raw escape sequences instead of either stripping them or interpreting them.

Reproduction

1. Configure a custom zsh PROMPT with color sequences, e.g.:

PROMPT='$(python_venv)%{$fg[blue]%}%~%{$reset_color%}$(git_branch) %{$fg[white]%}$%{$reset_color%} '

1. Launch Claude Code

1. The prompt/directory display shows:

(\033[32mvenv\033[0m) /Users/user/project (\033[33mmain\033[0m)

Expected behavior

The display should either:

• Strip ANSI escape codes and show plain text: (venv) ~/project (main)
• Render the colors correctly

Environment

• macOS (Darwin 25.2.0)
• Shell: zsh
• Claude Code (latest)