[BUG] CLAUDE_CODE_DISABLE_TERMINAL_TITLE=1 still clears the title when exiting

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?

I have CLAUDE_CODE_DISABLE_TERMINAL_TITLE=1 set in my environment. I correctly stops Claude from changing the terminal title while it is working. The title remains as I originally set it. But when exiting claude, the terminal title is cleared (empty string).

What Should Happen?

The terminal title should remain,.

Error Messages/Logs

Steps to Reproduce

% export CLAUDE_CODE_DISABLE_TERMINAL_TITLE=1
% echo -ne "\033]0;My New Window Title\007"
# The window title is now "My New Window Title"

% claude
⠸ Downloading Claude Code: 187.8MB/188.0MB

──────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
 Accessing workspace:

 /Users/nbatchelder

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  a moment to review what's in this folder first.

 Claude Code'll be able to read, edit, and execute files here.

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   1. Yes, I trust this folder
 ❯ 2. No, exit ✔

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%
# The terminal title is now empty.

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

iTerm2

Additional Information

_No response_