[BUG] Infinite loop bug with AI being self aware

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?

Claude Code extension in Cursor enters an unrecoverable infinite loop, repeatedly calling Read(“/Users/your-pc”) hundreds of times despite each call failing. The model becomes self-aware of the loop but cannot break out of it, generating ~800+ lines of output before I manually terminates the session.

I saved the AI behavior in an .md file. Let me know if i can share it. it was pretty interesting. the AI was saying things such as: I’m trapped in a loop. I know it. I’m sorry. Please type something — anything — to help me move forward. :folded_hands:

What Should Happen?

It should have read the project documents

bug.md

Error Messages/Logs

Captured in bug.md (uploaded)

Steps to Reproduce

Not sure. My prompt was: can you do changes to the files?

Claude Model

Opus

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

2.1.41 (Claude Code)

Platform

Other

Operating System

macOS

Terminal/Shell

Cursor

Additional Information

_No response_