Terminal tab title shows static 'claude code' instead of conversation topic

Description

Previously, Claude Code would update the terminal title (via escape sequences) to reflect the current conversation topic/summary. This was useful for identifying sessions in VSCode terminal tabs.

Now the terminal title is always set to a static "claude code" string, regardless of the conversation content.

Environment

• Claude Code version: 2.1.59
• Terminal: VSCode integrated terminal
• OS: macOS
• VSCode setting: "terminal.integrated.tabs.title": "${sequence}"

Expected behavior

Terminal tab title should display the conversation topic/summary, as it did in previous versions.

Actual behavior

Terminal tab title always shows "claude code" with no conversation context.

Note: The activity/spinner indicator in the title works correctly — so escape sequences are being processed by the terminal. Only the conversation topic part is missing.

Additional context

• CLAUDE_CODE_DISABLE_TERMINAL_TITLE is not set
• No terminal-related overrides in ~/.claude/settings.json
• VSCode is correctly configured to accept process-set titles via ${sequence}