[BUG] Claude Code response washed off in terminal(using zsh)

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?

The response are getting washed off where some bits of response are obscured. I have tried to look into this but couldnt find a solution

<img width="1069" height="380" alt="Image" src="https://github.com/user-attachments/assets/4243ef30-327a-404b-8cbc-5c3f241534e2" />

<img width="1092" height="421" alt="Image" src="https://github.com/user-attachments/assets/130e3e4e-9c45-46d8-ab09-b762f78d3eb3" />

What Should Happen?

I should be able to see obscured part of the repsonse

Error Messages/Logs

Steps to Reproduce

N.A

Claude Model

None

Is this a regression?

No, this never worked

Last Working Version

_No response_

Claude Code Version

2.1.62 (Claude Code)

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

Terminal.app (macOS)

Additional Information

_No response_