Keyboard Input Handling Broken on Mac Terminal for Line Breaks

Bug Description
Shift+enter doesn't work in Mac Terminal to create a new line. I cannot the terminal integration command in order to use option+enter as I have a British keyboard and need option+3 to work in order to enter a # character.

Environment Info

• Platform: darwin
• Terminal: Apple_Terminal
• Version: 1.0.61
• Feedback ID: b06f2353-6e18-4530-8760-4e443e4de42c

Errors

[{"error":"Error: Command failed: security find-generic-password -a $USER -w -s \"Claude Code\"\nsecurity: SecKeychainSearchCopyNext: The specified item could not be found in the keychain.\n\n    at genericNodeError (node:internal/errors:983:15)\n    at wrappedFn (node:internal/errors:537:14)\n    at checkExecSyncError (node:child_process:924:11)\n    at execSync (node:child_process:996:15)\n    at i7 (file:///opt/homebrew/lib/node_modules/@anthropic-ai/claude-code/cli.js:865:5106)\n    at file:///opt/homebrew/lib/node_modules/@anthropic-ai/claude-code/cli.js:777:49649\n    at Q (file:///opt/homebrew/lib/node_modules/@anthropic-ai/claude-code/cli.js:674:14420)\n    at kJ (file:///opt/homebrew/lib/node_modules/@anthropic-ai/claude-code/cli.js:777:47087)\n    at XH (file:///opt/homebrew/lib/node_modules/@anthropic-ai/claude-code/cli.js:777:45954)\n    at Y9 (file:///opt/homebrew/lib/node_modules/@anthropic-ai/claude-code/cli.js:777:52275)","timestamp":"2025-07-26T10:20:54.926Z"}]