[BUG] failing to read a png or jpg and doesn't recover

Environment

• Platform (select one):
• [ x] Anthropic API
• [ ] AWS Bedrock
• [ ] Google Vertex AI
• [ ] Other: <!-- specify -->
• Claude CLI version: <!-- output of claude --version -->1.0.55 (Claude Code)
• Operating System: <!-- e.g. macOS 14.3, Windows 11, Ubuntu 22.04 -->Sequoia 15.5 (24F74)
• Terminal: <!-- e.g. iTerm2, Terminal App --> running in terminal within Cursor

Bug Description

<!-- A clear and concise description of the bug -->
Let me try a different approach by examining the
screenshots directly:

⏺ Read(local_screenshots/continuous_0000_20250718_175316.pn
g)
⎿ Read image (34.2KB)
⎿ API Error: 400 {"type":"error","error":{"type":"invalid
_request_error","message":"Could not process image"}}

Steps to Reproduce

1. <!-- First step --> just try to read an image
2. <!-- Second step --> it never returns from this.
3. <!-- And so on... -->

Expected Behavior

<!-- What you expected to happen --> It should process the image, I have tried both jpg and png, same result.

Actual Behavior

<!-- What actually happened --> It will repeat this error regardless of what you ask it next. You cannot /resume a previous conversation, must restart it... loosing context and time.

Additional Context

!Image
<img width="1919" height="992" alt="Image" src="https://github.com/user-attachments/assets/fc195be1-2b99-4b34-94cd-9ca771e7ed34" />
<img width="1919" height="992" alt="Image" src="https://github.com/user-attachments/assets/b891064b-165d-441a-984e-c723b68b2f0e" />

<!-- Add any other context about the problem here, such as screenshots, logs, etc. -->