[BUG] Shift+Enter regression in v2.1.85 on Windows Terminal Preview 1.25.622.0

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?

Shift+Enter worked correctly on v2.1.84 using Windows Terminal Preview 1.25's native Kitty Keyboard Protocol - no sendInput workaround needed. After auto-updating to v2.1.85, Shift+Enter
submits the prompt instead of inserting a newline.

Downgrading to v2.1.84 immediately restores correct Shift+Enter behavior.

The v2.1.85 changelog lists two related fixes:

• "Fixed shift+enter and meta+enter being intercepted by typeahead suggestions instead of inserting newlines"
• "Fixed terminal left in enhanced keyboard mode after exit in Ghostty, Kitty, WezTerm, and other terminals supporting the Kitty keyboard protocol"

The second fix appears to have over-corrected. Running /terminal-setup on v2.1.85 says "Terminal setup cannot be run from windows-terminal" - CC doesn't recognize WT 1.25+ as a Kitty-capable
terminal. The fix likely stopped enabling Kitty protocol on WT altogether, which broke Shift+Enter.

WT 1.25 is listed in the WT 1.25 release notes as supporting the Kitty Keyboard Protocol. It should be
treated the same as Ghostty, Kitty, WezTerm, etc.

What Should Happen?

Shift+Enter should insert a newline, as it does on v2.1.84.

Error Messages/Logs

Steps to Reproduce

1. Install Windows Terminal Preview 1.25.622.0
2. Ensure no sendInput workaround for shift+enter in WT settings.json
3. Install Claude Code v2.1.85
4. Run claude in PowerShell 7.6 inside Windows Terminal
5. Type some text, press Shift+Enter
6. Observe: prompt submits instead of inserting a newline
7. Downgrade to v2.1.84 (npm install -g @anthropic-ai/claude-code@2.1.84)
8. Repeat steps 4-5
9. Observe: Shift+Enter correctly inserts a newline

Claude Model

Opus

Is this a regression?

Yes, this worked in a previous version

Last Working Version

2.1.84

Claude Code Version

2.1.85

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

Windows Terminal

Additional Information

Environment:

• Windows 11 Pro 10.0.26200
• Windows Terminal Preview 1.25.622.0
• PowerShell 7.6.0

Related issues:

• #25057 - long-running Shift+Enter Windows issue (high-priority, open)
• #38809 - Shift+Enter broken in v2.1.83 (closed, supposedly fixed in 2.1.85)
• #39319 - Kitty protocol not reset on exit (the bug v2.1.85 tried to fix, which caused this regression)

Workaround: Pinned to v2.1.84 with "DISABLE_AUTOUPDATER": "1" in settings.