Unexpected Termination During Code Generation Despite Continue Prompt

Bug Description
Claude Code keeps stopping suddently while it is still working, even when I continually tell it to Continue. I've tried restarting my computer but it still keeps happening. This only started happening today after Claude Code updated to the latest version.

Environment Info

• Platform: darwin
• Terminal: cursor
• Version: 1.0.53
• Feedback ID: ab634b0c-5c7f-425a-bda0-698f6701c8a7

Errors

[{"error":"Error: Command failed: security find-generic-password -a $USER -w -s \"Claude Code\"\nsecurity: SecKeychainSearchCopyNext: The specified item could not be found in the keychain.\n\n    at genericNodeError (node:internal/errors:983:15)\n    at wrappedFn (node:internal/errors:537:14)\n    at checkExecSyncError (node:child_process:891:11)\n    at execSync (node:child_process:963:15)\n    at AI (file:///Users/saadkhan/node_modules/@anthropic-ai/claude-code/cli.js:728:6320)\n    at file:///Users/saadkhan/node_modules/@anthropic-ai/claude-code/cli.js:640:16554\n    at Q (file:///Users/saadkhan/node_modules/@anthropic-ai/claude-code/cli.js:542:14406)\n    at MF (file:///Users/saadkhan/node_modules/@anthropic-ai/claude-code/cli.js:640:14339)\n    at zX (file:///Users/saadkhan/node_modules/@anthropic-ai/claude-code/cli.js:640:13205)\n    at MB (file:///Users/saadkhan/node_modules/@anthropic-ai/claude-code/cli.js:640:19174)","timestamp":"2025-07-17T04:29:47.540Z"},{"error":"Error: 1: 1 Error: End of central directory record signature not found. Either not a zip file, or file is truncated.\n    at Ef (file:///Applications/Cursor.app/Contents/Resources/app/out/vs/code/node/cliProcessMain.js:52:28755)\n    at file:///Applications/Cursor.app/Contents/Resources/app/out/vs/code/node/cliProcessMain.js:52:30083\n    at /Applications/Cursor.app/Contents/Resources/app/node_modules/yauzl/index.js:40:7\n    at /Applications/Cursor.app/Contents/Resources/app/node_modules/yauzl/index.js:190:5\n    at Immediate.<anonymous> (/Applications/Cursor.app/Contents/Resources/app/node_modules/yauzl/index.js:705:38)\n    at process.processImmediate (node:internal/timers:483:21) {\n  code: 'Extract',\n  name: 'Extract'\n}\nFailed Installing Extensions: file:///Users/saadkhan/node_modules/%40anthropic-ai/claude-code/vendor/claude-code.vsix\n(node:39808) [DEP0168] DeprecationWarning: Uncaught N-API callback exception detected, please run node with option --force-node-api-uncaught-exceptions-policy=true to handle those exceptions properly.\n(Use `Cursor --trace-deprecation ...` to show where the warning was created)\n\n    at Lq6 (file:///Users/saadkhan/node_modules/@anthropic-ai/claude-code/cli.js:1208:5219)\n    at process.processTicksAndRejections (node:internal/process/task_queues:105:5)\n    at async qq6 (file:///Users/saadkhan/node_modules/@anthropic-ai/claude-code/cli.js:1208:2582)","timestamp":"2025-07-17T04:29:50.403Z"}]