[BUG] Discussing with the agent clears the conversation history randomly

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?

The conversation history gets automatically cleared by the agent, whenever it wants to.
Before, everything was rendered until /compact was executed.

Now, I could give a detailed prompt to the agent, it then investigates for a while, comes back with questions. I answer them, then on the second response, the history gets mangled and I only see its latest response. With no way to scroll, no way to recall what we were discussing in the first place.

This is a HUGE hit to productivity and usability

What Should Happen?

It should work like before, like before version v2.1.90

Error Messages/Logs

Steps to Reproduce

Nothing detailed

Claude Model

None

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

2.1.91 (Claude code)

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

Terminal.app (macOS)

Additional Information

_No response_