[BUG] Escape key and Shift+Tab (mode switching) not working in VS Code integrated terminal on 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

Pressing Escape key and Shift+Tab (to cycle agent modes) do nothing inside VS Code's integrated terminal on Windows. The keyboard itself works fine — these keys function correctly in other CLIs (e.g., Gemini CLI handles Shift+Tab for mode switching without issue on the same machine).

Environment

• Claude Code version: 2.1.84
• VS Code version: 1.113.0
• Operating System: Windows
• Terminal: VS Code integrated terminal

Current Behavior

Both keys do nothing. No mode switch, no visual feedback, no error.

Workarounds

• Run claude from Windows Terminal instead of VS Code's integrated terminal
• Use the VS Code Extension panel (sidebar UI) instead of the CLI
• Use /plan slash command instead of Shift+Tab for mode switching

What Should Happen?

Expected Behavior

• Escape should cancel the current operation
• Shift+Tab should cycle through agent modes (default → auto-edit → plan)

Error Messages/Logs

Steps to Reproduce

Steps to Reproduce

1. Open VS Code on Windows
2. Open the integrated terminal
3. Run claude
4. Press Escape or Shift+Tab
5. Nothing happens — no mode switch, no cancel, no visual feedback

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

2.1.84

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

VS Code integrated terminal

Additional Information

_No response_