[BUG] Interrupted on file reads since auto-update to 2.1.79 - Windows

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?

Bug Description
Since the auto-update to version 2.1.79, Claude Code interrupts every time it tries to read files (e.g. during /init or any task involving file reads). The error shown is:
Interrupted · What should Claude do instead?
After the interruption, Claude Code stops responding entirely.
Steps to reproduce

Run Claude Code 2.1.79 on Windows
Run /init in any project
When Claude starts reading files, "Interrupted · What should Claude do instead?" appears

Expected behavior
Claude Code reads files and continues normally, as it did for months before this update.
Actual behavior
Claude Code interrupts on every file read operation and stops responding.
Workaround
Downgrading to 2.1.62 fixes the issue, but auto-update immediately reinstalls 2.1.79.
Environment

Claude Code version: 2.1.79 (broken), 2.1.62 (working)
OS: Windows
Install method: npm global (npm install -g)
Node path: C:\Program Files\nodejs\node.exe

What Should Happen?

Bug Description
Since the auto-update to version 2.1.79, Claude Code interrupts every time it tries to read files (e.g. during /init or any task involving file reads). The error shown is:
Interrupted · What should Claude do instead?
After the interruption, Claude Code stops responding entirely.
Steps to reproduce

Run Claude Code 2.1.79 on Windows
Run /init in any project
When Claude starts reading files, "Interrupted · What should Claude do instead?" appears

Expected behavior
Claude Code reads files and continues normally, as it did for months before this update.
Actual behavior
Claude Code interrupts on every file read operation and stops responding.
Workaround
Downgrading to 2.1.62 fixes the issue, but auto-update immediately reinstalls 2.1.79.
Environment

Claude Code version: 2.1.79 (broken), 2.1.62 (working)
OS: Windows
Install method: npm global (npm install -g)
Node path: C:\Program Files\nodejs\node.exe

Error Messages/Logs

Steps to Reproduce

Bug Description
Since the auto-update to version 2.1.79, Claude Code interrupts every time it tries to read files (e.g. during /init or any task involving file reads). The error shown is:
Interrupted · What should Claude do instead?
After the interruption, Claude Code stops responding entirely.
Steps to reproduce

Run Claude Code 2.1.79 on Windows
Run /init in any project
When Claude starts reading files, "Interrupted · What should Claude do instead?" appears

Expected behavior
Claude Code reads files and continues normally, as it did for months before this update.
Actual behavior
Claude Code interrupts on every file read operation and stops responding.
Workaround
Downgrading to 2.1.62 fixes the issue, but auto-update immediately reinstalls 2.1.79.
Environment

Claude Code version: 2.1.79 (broken), 2.1.62 (working)
OS: Windows
Install method: npm global (npm install -g)
Node path: C:\Program Files\nodejs\node.exe

Claude Model

None

Is this a regression?

Yes, this worked in a previous version

Last Working Version

2.1.62

Claude Code Version

2.1.79

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

Terminal.app (macOS)

Additional Information

_No response_