[FEATURE] Option to preserve terminal cursor shape (prevent switching to block cursor)

Preflight Checklist

• [x] I have searched existing requests and this feature hasn't been requested yet
• [x] This is a single feature request (not multiple features)

Problem Statement

When Claude Code launches, it changes the terminal cursor from a bar (beam)
cursor to a block cursor. After exiting Claude Code, the cursor reverts to
normal, but during the session the block cursor is forced.

Proposed Solution

Please add a setting (e.g., "preserveCursorShape": true in settings.json) to
prevent Claude Code from overriding the terminal's cursor shape.

Alternative Solutions

_No response_

Priority

Medium - Would be very helpful

Feature Category

CLI commands and flags

Use Case Example

_No response_

Additional Context

• Terminal: iTerm2 3.6.9
• OS: macOS
• Shell: zsh
• iTerm2 does not provide an option to prevent applications from changing the

cursor shape via escape sequences, so this needs to be handled on the Claude
Code side.