[BUG] VS Code hotkeys captured by Claude Code terminal in v2.1.83 (Cmd+C, Cmd+Shift+E, etc.)

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?

In v2.1.83, the Claude Code terminal in VS Code captures most VS Code hotkeys instead of letting them pass through to VS Code. This makes it impossible to use standard keyboard shortcuts while the Claude Code terminal panel is focused.

Examples of affected shortcuts:

• Cmd+C — does not copy selected text, instead is captured by the terminal
• Cmd+Shift+E — does not open the VS Code Explorer view, instead types "e" in the terminal
• Most other standard VS Code hotkeys are similarly captured

What Should Happen?

VS Code keyboard shortcuts (Cmd+C, Cmd+Shift+E, etc.) should pass through to VS Code when the Claude Code terminal is focused, as they did in v2.1.81 and earlier.

Steps to Reproduce

1. Install Claude Code v2.1.83 (native install, VS Code extension)
2. Open the Claude Code terminal panel in VS Code
3. Select text in the terminal and press Cmd+C — text is not copied
4. Press Cmd+Shift+E — instead of opening Explorer, "e" is typed in the terminal
5. Most other VS Code hotkeys are similarly intercepted

Is this a regression?

Yes, this worked in a previous version

Last Working Version

2.1.81

Claude Code Version

2.1.83

Platform

Anthropic API

Operating System

macOS (Darwin 24.5.0)

Terminal/Shell

VS Code integrated terminal (zsh)

Additional Information

Downgrading to v2.1.81 via curl -fsSL https://claude.ai/install.sh | bash -s 2.1.81 resolves the issue. Auto-updates disabled to prevent re-upgrading.

Install method: native (~/.local/share/claude/versions/)