[BUG] newline in vscode extension with shift enter broken in V2.1.70

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?

Since a few hours ago, probably aligned to v1.2.70, the shift enter started submitting instead of creating new lines. I've checked vscode and the extension is up to date. I've tried using Claude's help, but nothing worked.

What Should Happen?

SHIFT + ENTER creates a new line in vscode extension

Error Messages/Logs

Steps to Reproduce

open claude code extension on vscode, type hey shift + enter and instead of breaking the line it will submit

Claude Model

None

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

V2.1.70

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

VS Code integrated terminal

Additional Information

_No response_