Tool output from earlier in conversation gets trimmed after recent update (v2.1.90)

Description

After a recent Claude Code update (currently on v2.1.90), tool output from earlier in a conversation gets trimmed/truncated in the terminal UI. This didn't happen in previous versions.

Steps to reproduce

1. Start a Claude Code session
2. Perform several tool calls (e.g., multiple Bash commands, file reads, MCP tool calls, etc.)
3. Scroll up in the conversation — earlier tool outputs are truncated/trimmed

Expected behavior

All tool outputs from the session should remain visible and scrollable in the terminal, as they were in previous versions.

Actual behavior

Earlier tool outputs are trimmed. Only the most recent tool calls show their full output. The conversation history shows the tool was called but the output is gone.

Environment

• Claude Code v2.1.90
• Opus 4.6 (1M context)
• macOS (Darwin 24.6.0)