[BUG] past history cannot be scrolled in iterm on 2.1.90 on macos OR selective history is shown

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?

Scroll history apparently gets cut off, it seems I have no more than 1 page worth of scroll history but I see the original banner w/the claude creature icon. It makes it unusable the way codex also destroys scroll history in iterm (but not in terminal).

This might not be exactly what's happening, sometimes it feels that it's purposely narrowing focus. some anecdotes

• ran a complex slash command with 12 steps, somewhere in the middle is the prose I want to read, I can't find it -lost in scroll history - "feels like codex on iterm" - cannot scroll > 1 page back, see the banner
• in said session, ran a follow up slash command, can scroll back to see the full output of the 2nd slash command, so some history is there
• started a new session, immediately upon working, I scroll back and I can't see the original prompt - selective cut off?
• As this one progresses, I can only scroll back to a step in the process, it seems complete in that step, but I don't get to see any of the previous steps.

This make the UX borderline useless since I typically have multi step slash commands or to answer most prompts I output a fair amount to the screen in > 1 step

What Should Happen?

I should be able to scoll back to all history that is within the iterm scroll history limit, like all previous versions of claude code

Error Messages/Logs

Steps to Reproduce

• run a slash command with multiple steps and a fair amount of screen output, but within the iterm scroll history limit
• see that you cannot scroll back to the beginning of the invocation, but see the banner and some subsegment of the run

Claude Model

Sonnet (default)

Is this a regression?

Yes, this worked in a previous version

Last Working Version

2.1.88 works I have a few sessions still alive, dunno if it worked in 2.1.89

Claude Code Version

2.1.90

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

iTerm2

Additional Information

_No response_