Mac App does not respond to messages when working in a local directory

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?

The Mac App does not respond to messages when working in a local directory. Messages are sent successfully and appear in the chat, but no response is ever received — the chat area remains completely blank. No error message, no loading indicator.

<img width="1217" height="898" alt="Image" src="https://github.com/user-attachments/assets/32959d86-4f22-4cf1-b29a-41b6ceb56941" />

What Should Happen?

After sending a message, Claude should respond normally, just as it does when working in a cloud/remote environment.

Error Messages/Logs

No error messages are shown in the app. System log (log show --predicate 'process == "Claude"') shows no errors or faults (Error: 0, Fault: 0). Multiple Claude processes are running simultaneously (PIDs 698, 8816, 10919) and repeated TCCAccessRequest IPC entries are visible, but no actionable errors.

Steps to Reproduce

1. Open the Claude Code Mac App (version 2.1.83)
2. Select a local folder as the working directory (e.g. a subfolder of the Documents directory)
3. Type any message and send it
4. Observe that no response appears — the chat remains blank

Note: The issue does not reproduce when selecting a cloud/remote environment. The Claude Code CLI (claude) works correctly with the same local directories.

Claude Model

Not sure / Multiple models

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

2.1.83 (Claude Code)

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

Terminal.app (macOS)

Additional Information

_No response_