[BUG] v2.1.98 - All tools return empty output (Bash, Read, Glob, Grep, WebSearch)

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?

## Bug Description
After auto-updating to Claude Code v2.1.98, all tool calls return empty output. No results are returned from any tool including Bash, Read, Glob, Grep, and WebSearch.

## Environment

• Claude Code version: v2.1.98
• OS: macOS Darwin 23.6.0
• Shell: zsh
• Previous version worked fine

## Steps to Reproduce

1. Update to v2.1.98
2. Start Claude Code
3. Any tool call (e.g., echo "test", Read file, Glob, Grep, WebSearch) returns <tools></tools> with no content

## Expected Behavior
Tools should return their output normally.

## Actual Behavior
All tool invocations return empty. The tool appears to execute but no result is passed back to the conversation.

Additional Context

• Issue appeared immediately after auto-update to v2.1.98
• Network is working, disk space is sufficient
• Restarting Claude Code does not help

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What Should Happen?

All tool calls (Bash, Read, Glob, Grep, WebSearch) should return their normal output. For example, echo "test" should return "test", Read file should return file contents, Glob
should return matching file paths.

Error Messages/Logs

Steps to Reproduce

1. Install Claude Code v2.1.98 (auto-updated from previous version)
2. Start Claude Code in any project directory
3. Ask Claude to run any tool, e.g.:

• "run echo hello" (Bash tool)
• "read pom.xml" (Read tool)
• "find xml files" (Glob tool)

1. Observe that all tool calls return empty output with no content
2. No error messages are shown, tools appear to execute but return nothing

Claude Model

Other

Is this a regression?

Yes, this worked in a previous version

Last Working Version

v2.1.92

Claude Code Version

v2.1.98

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

Terminal.app (macOS)

Additional Information

_No response_