[BUG] @mention file picker only shows root directory files

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?

When typing @ to mention files, only files in the root directory are displayed. Previously, all files within the codebase were shown.

What Should Happen?

The @ file picker should display all files throughout the codebase, not just root-level files.

Error Messages/Logs

Steps to Reproduce

1. Open Claude Code Desktop
2. Type @ in the input field
3. Observe that only root directory files appear

Claude Model

Sonnet (default)

Is this a regression?

Yes, this worked in a previous version

Last Working Version

2.1.68

Claude Code Version

2.1.71 (Claude Code)

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

Terminal.app (macOS)

Additional Information

_No response_