Local Claude Installation Fails with Persistent Update Prompt

Bug Description
I tried re-installing Claude, Instaelled it locally instead of global and I still get an error message saying I need to update or run Claude doctor or npm install. When I run it, I keep getting everything is uptodate.

Environment Info

• Platform: darwin
• Terminal: iTerm.app
• Version: 1.0.40
• Feedback ID: 6492d0f1-f4dd-4b4a-b963-09cc124a95a3

Errors

[{"error":"Error: Command failed: security find-generic-password -a $USER -w -s \"Claude Code\"\nsecurity: SecKeychainSearchCopyNext: The specified item could not be found in the keychain.\n\n    at genericNodeError (node:internal/errors:983:15)\n    at wrappedFn (node:internal/errors:537:14)\n    at checkExecSyncError (node:child_process:892:11)\n    at execSync (node:child_process:964:15)\n    at FI (file:///opt/homebrew/lib/node_modules/@anthropic-ai/claude-code/cli.js:702:3921)\n    at file:///opt/homebrew/lib/node_modules/@anthropic-ai/claude-code/cli.js:623:9038\n    at Q (file:///opt/homebrew/lib/node_modules/@anthropic-ai/claude-code/cli.js:526:13327)\n    at _X (file:///opt/homebrew/lib/node_modules/@anthropic-ai/claude-code/cli.js:623:8184)\n    at H_ (file:///opt/homebrew/lib/node_modules/@anthropic-ai/claude-code/cli.js:623:7265)\n    at U9 (file:///opt/homebrew/lib/node_modules/@anthropic-ai/claude-code/cli.js:623:11432)","timestamp":"2025-07-02T23:42:03.724Z"},{"error":"Error: Failed to install new version of claude:  npm error code ENOTEMPTY\nnpm error syscall rename\nnpm error path /opt/homebrew/lib/node_modules/@anthropic-ai/claude-code\nnpm error dest /opt/homebrew/lib/node_modules/@anthropic-ai/.claude-code-2DTsDk1V\nnpm error errno -66\nnpm error ENOTEMPTY: directory not empty, rename '/opt/homebrew/lib/node_modules/@anthropic-ai/claude-code' -> '/opt/homebrew/lib/node_modules/@anthropic-ai/.claude-code-2DTsDk1V'\nnpm error A complete log of this run can be found in: /Users/faraz/.npm/_logs/2025-07-02T23_42_04_672Z-debug-0.log\n\n    at _01 (file:///opt/homebrew/lib/node_modules/@anthropic-ai/claude-code/cli.js:2131:392)\n    at process.processTicksAndRejections (node:internal/process/task_queues:105:5)\n    at async file:///opt/homebrew/lib/node_modules/@anthropic-ai/claude-code/cli.js:2525:8652","timestamp":"2025-07-02T23:42:04.791Z"}]