[BUG] Title: Up/Down arrow history navigation gets stuck on /compact entry — cannot navigate past it.

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?

Title: Up/Down arrow history navigation gets stuck on /compact entry — cannot navigate past it

Steps to reproduce:

Run /compact in a session
Type a new (preferably multi-line) prompt but do not submit.
Press Up arrow to navigate through history
Observe: cursor gets stuck on the /compact history entry and Down arrow will not navigate past it back to the draft
Expected: Down arrow should return to in-progress draft or next history entry

Actual: History navigation freezes at /compact entry; in-progress prompt is lost

Impact: Long manually-typed prompts are permanently lost with no recovery path

Environment: Windows 10, VS Code extension

What Should Happen?

Expected: Down arrow should return to in-progress draft or next history entry

Error Messages/Logs

Steps to Reproduce

Steps to reproduce:

1. Run /compact in a session
2. Type a new (preferably multi-line) prompt but do not submit.
3. Press Up arrow to navigate through history
4. Observe: cursor gets stuck on the /compact history entry and Down arrow will not navigate past it back to the draft.

Claude Model

Sonnet (default)

Is this a regression?

I don't know

Last Working Version

_No response_

Claude Code Version

2.1.92

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

Windows Terminal

Additional Information

_No response_