[BUG] Pressing Enter not running command - just adding a new line

Environment

• Platform (select one):
• [x] Anthropic API
• [ ] AWS Bedrock
• [ ] Google Vertex AI
• [ ] Other: <!-- specify -->
• Claude CLI version: 1.0.33
• Operating System: macOS 12.6
• Terminal: iTerm2

Bug Description

The Enter key is totally non-functional in Claude Code. It works everywhere else in my system, but not in Claude Code. Hitting Enter adds a new line. I've tried both iTerm2 and Terminal.

Similar problem here, but nothing described helped:
http://github.com/anthropics/claude-code/issues/436

Steps to Reproduce

1. Open iTerm2
2. Login to my remote server (ubuntu 24.04)
3. Run claude
4. Hit enter after typing command - not working, enter just adding a new line.

Expected Behavior

Hit enter and prompt starts to work.

Actual Behavior

Hit enter just adding a new line.

Additional Context

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