[BUG] Ralph Wiggum loops are broken now

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?

Something happened in the most recent update and now when I run claude code in a "ralph wiggum loop" where it doesn't show the window, then claude code can't read any files for some reason and breaks. It has been going great for months up until around 10-11pm last night so like 15 hours ago.

What Should Happen?

Claude code should be able to read files in the docker container but now it can only do things like read files when its spawned in windowed mode.

This doesn't work anymore (used to work 15 hours ago, and would run claude code in a way that would enable the ralph wiggum loop)
"docker exec -w /workspace claude-pds claude --dangerously-skip-permissions "$(cat PROMPT2.md)" 2>&1 | tee .log"

This still works (opens a window though and is not capable of running in a loop)
"docker exec -it -w /workspace claude-pds claude --dangerously-skip-permissions "$(cat PROMPT.md)" | tee .log"

Error Messages/Logs

Steps to Reproduce

Run claude code in a docker container.

Try a ralph loop in the docker container in the way that the ralph loop actually works.
"docker exec -w /workspace claude-pds claude --dangerously-skip-permissions "$(cat PROMPT2.md)" 2>&1 | tee .log"

Make sure the prompt includes reading a file in the workspace.

Try ralph loop in a docker container using windowed mode so you can see the terminal (is impossible to use with a ralph loop as claude code can't properly exit automatically when in this mode)
" docker exec -it -w /workspace claude-pds claude --dangerously-skip-permissions "$(cat PROMPT.md)" | tee .log"

Notice how the windowed mode works and the windowless mode doesn't work anymore.

Also try giving it a prompt that doesn't involve anything, just ask it to say hi back and it will always say hi back. But as soon as you ask it to do literally anything that actually matters it will hang forever.

This is a very inconvenient bug at is completely breaks ralph wiggum loops!!!!

Claude Model

None

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

2.1.70

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

Terminal.app (macOS)

Additional Information

_No response_