[BUG] Terminal bleeding after login in devcontainers in recent versions

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?

<img width="1066" height="160" alt="Image" src="https://github.com/user-attachments/assets/0ea72a02-e269-4e05-a78f-c53ed77e4113" />
When I install the latest version of Claude in a devcontainer and open it am getting ❯ ^[P>|tmux 3.2a^[\^[[?1;2c% and ❯ ^[[I^[P>|xterm.js(6.1.0-beta.191)^[\^[[?1;2c if using it directly in VS Code terminal, even with the latest version of the extension I get Error: Query closed before response received. And it is not a cosmetic thing in the terminal, it immediately breaks and doesnt allow me to type... Keep in mind it happens after you've logged in and reopened claude, the first time it works all right.

What Should Happen?

I should be able to write my prompt as usual...

Error Messages/Logs

This is from the extension logs

2026-04-08 12:29:33.751 [info] Closing Claude on channel: ...
2026-04-08 12:29:33.751 [error] Error spawning Claude (on channel ...): Error: Query closed before response received
2026-04-08 12:29:33.751 [error] Failed to load config cache: Error: Query closed before response received
2026-04-08 12:29:33.751 [error] Error processing client request: Error: Query closed before response received
2026-04-08 12:29:33.758 [info] Received message from webview: {"type":"interrupt_claude","channelId":"..."}
2026-04-08 12:29:33.758 [warning] Channel not found: ...
2026-04-08 12:29:38.808 [info] Received message from webview: {"type":"request","requestId":"...","request":{"type":"open_output_panel"}}
2026-04-08 12:29:40.840 [info] Received message from webview: {"type":"request","requestId":"...","request":{"type":"open_output_panel"}}

Steps to Reproduce

Use Claude in DevContainers or the latest version of the Extension on VS Code DevContainers, and login and exit, and reopen...

Claude Model

Not sure / Multiple models

Is this a regression?

Yes, this worked in a previous version

Last Working Version

2.1.69 is what I tested from a month before

Claude Code Version

2.1.96

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

VS Code integrated terminal

Additional Information

_No response_