[BUG] Terminal UI doesn't show frames when `CLAUDE.md` exist

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?

This issue has been for a few weeks for me now.

If current dir has CLAUDE.md file exist, claude code never shows the frames in terminal. See attached screenshot.

<img width="1306" height="163" alt="Image" src="https://github.com/user-attachments/assets/910858e2-aa68-41d9-bc60-6cbaa416562d" />

If I remove the CLAUDE.md file from current dir, claude code working as expected., See attached.

<img width="1303" height="307" alt="Image" src="https://github.com/user-attachments/assets/7da8f051-43ee-4160-b02a-bf03faf9bcae" />

What Should Happen?

TUI should always show the window frame.

Error Messages/Logs

n/a

Steps to Reproduce

See above.

Claude Model

None

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

2.1.87

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

Terminal.app (macOS)

Additional Information

_No response_