[BUG] Model retries identical failing Edit tool call multiple times without diagnosing error

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 model retried an identical failing tool call multiple times without diagnosing the error
The "string not found" error was clear and unambiguous, but no corrective action was taken between retries
Expected behaviour: stop and diagnose after the first failure, not retry the same call

What Should Happen?

stop and diagnose after the first failure, not retry the same call

Error Messages/Logs

Steps to Reproduce

who knows?

Claude Model

Sonnet (default)

Is this a regression?

I don't know

Last Working Version

_No response_

Claude Code Version

2.1.37

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

VS Code integrated terminal

Additional Information

_No response_