CLAUDE_CODE_NO_FLICKER=1 breaks text selection while scrolling in iTerm2

Summary

When CLAUDE_CODE_NO_FLICKER=1 is set, text selection via click-and-drag while scrolling stops working in iTerm2.

Environment

• Terminal: iTerm2
• OS: macOS
• Claude Code version: latest

Steps to reproduce

1. Add CLAUDE_CODE_NO_FLICKER=1 to ~/.claude/settings.json under env
2. Start a Claude Code session
3. Try to click and drag to select text while scrolling through output

Expected behavior

Text can be selected normally while scrolling, same as without the flag.

Actual behavior

Selection does not work — the terminal does not register the drag gesture for text selection when NO_FLICKER mode is active.

Workaround

Remove CLAUDE_CODE_NO_FLICKER=1. Selection works normally without it.

Notes

The flag works well in other terminals (e.g. Ghostty + tmux) but has this side effect in iTerm2. It would be helpful to document this known incompatibility, or handle iTerm2 differently.