[BUG] Session keeps getting interrupted without any external interventions like pressing escape

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 am using Claude Code version 2.1.78. After upgrading to this version, any instruction I give, it goes into an interrupted state:

● Searched for 7 patterns, read 3 files (ctrl+o to expand)     
  ⎿  Interrupted · What should Claude do instead?       
                                                                                                                                                                                                             
❯ /status                                                                                                                                                                                                    
  ⎿  Status dialog dismissed                                                                                                                                                                                 
                                                                                                                                                                                                             
❯ /effort                                                                                                                                                                                                    
  ⎿  Effort level: auto                                                                                                                                                                                      
                                                                                                                                                                                                             
❯ continue                                                                                                                                                                                                   
  ⎿  Interrupted · What should Claude do instead?
                                                                                                                                                                                                             
❯ proceed                                                                                                                                                                                                    
  ⎿  Interrupted · What should Claude do instead?                                                                                                                                                            
                                                                                                                                                                                                             
❯ /compact                                                                                                                                                                                                   
  ⎿  Error: Error during compaction: TypeError: A.with is not a function                 

Node version: v18.19.1

I am using a terminal inside vscode to do this on a remote server.

What Should Happen?

Until I upgraded, it would just process my instruction and churn out code. Now its not moving forward at all.

Error Messages/Logs

/compact                                                                                                                                                                                                   
  ⎿  Error: Error during compaction: TypeError: A.with is not a function  

❯ continue                                                                                                                                                                                                   
  ⎿  Interrupted · What should Claude do instead?
                                                                                                                                                                                                             
❯ proceed                                                                                                                                                                                                    
  ⎿  Interrupted · What should Claude do instead?

Steps to Reproduce

Just open claude code and give it an instruction.

Claude Model

None

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

2.1.78

Platform

Anthropic API

Operating System

Ubuntu/Debian Linux

Terminal/Shell

VS Code integrated terminal

Additional Information

_No response_