[BUG] (version 1.0.58) Session termination on 1-second timeout causes complete context loss

UPDATE

Hi, I later noticed other issues saying fixed in 1.0.58 so I upgraded to that, however I still have the same issue

<img width="808" height="313" alt="Image" src="https://github.com/user-attachments/assets/426db0d7-7cdb-4051-b891-705e92e96d32" />

Bellow and comments are from previous version
It feels so undesirable to have to franticly answer permission questions, i trues option 2. and it still asks
But even if the timeout happens shouldnt we be able to just answer after that anyway and continue, surely I should be able to ask it to do something and walk away briefly, compack and resume anything that happened to timeout due to an unanswered question

Environment

• Platform (select one):
• [x] Anthropic API
• [ ] AWS Bedrock
• [ ] Google Vertex AI
• [ ] Other: <!-- specify -->
• Claude CLI version: 1.0.48 (Claude Code)
• Operating System: macOS (Darwin 24.5.0)
• Terminal: zsh via vscode terminal panel

## Bug Description
Claude Code terminates the entire session when encountering a 1-second timeout, causing users to lose all conversation context and work progress. This is a critical UX issue
that makes the tool unreliable for extended work sessions.

## Steps to Reproduce

1. Start a Claude Code session with active conversation
2. Perform operations that may trigger network delays
3. Wait for timeout error to occur (happens intermittently)
4. Observe complete session termination

## Expected Behavior

• Retry failed operations with exponential backoff
• Display timeout warnings but maintain active session
• Graceful degradation instead of complete termination
• Session state persistence for recovery after network issues

## Actual Behavior
Complete session termination with error:
Error: Timeout waiting after 1000ms
at cN2 (file:///Users/rgb/node_modules/@anthropic-ai/claude-code/cli.js:1375:13672)
at process.processTicksAndRejections (node:internal/process/task_queues:105:5)
at async ZR6 (file:///Users/rgb/node_modules/@anthropic-ai/claude-code/cli.js:1958:12070)
at async J (file:///Users/rgb/node_modules/@anthropic-ai/claude-code/cli.js:1958:10781)

## Additional Context

• Occurred multiple times within 10 minutes during normal usage
• 1-second timeout threshold appears too aggressive for network operations
• Context loss significantly impacts productivity as users must restart conversations
• Issue appears to be in Claude Code's internal networking/communication layer
• I'm confuse why the timeout wouldnt just drop what its waiting for but maintain the current session perhaps with some info that it timed out