Statsline renders raw ANSI escape codes instead of colored text

Description

The statsline at the bottom of the Claude Code CLI displays raw ANSI escape codes as literal text instead of rendering them as colors.

What's shown:

\033[1;34mgit:(\033[1;31mmain\033[1;34m)\033[0m

What's expected:
Colored text showing git:(main) with proper ANSI color rendering.

Environment

• Claude Code version: 2.1.81
• Terminal: iTerm2
• OS: macOS (Darwin 23.1.0)
• TERM: xterm-256color
• Report terminal type (iTerm2 setting): xterm-256color
• Character encoding: Unicode (UTF-8)

Steps to reproduce

1. Open Claude Code in iTerm2
2. Observe the statsline at the bottom of the terminal

Screenshots

_Will be attached in a comment below._