[BUG] Failed awsAuthRefresh output shown even after auth succeeds

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?

My awsAuthRefresh command failed, causing an error message to appear. I addressed the cause of the auth error and submitted another prompt, which succeeded, indicating successful auth refresh. However, the error from the failed auth refresh is still shown, and it's sticky-positioned below the conversation.

This screenshot captures the issue: The agent output is shown above the auth error message, even though the auth error was resolved. I can continue the conversation, but it continues _above_ the no-longer-applicable auth error message.

<img width="1014" height="419" alt="Image" src="https://github.com/user-attachments/assets/23f2f195-10f3-479a-ab40-729d92827ff9" />

What Should Happen?

After awsAuthRefresh succeeds, the auth error message should either 1) be dismissed or 2) be positioned at the point in the conversation where auth failed, instead of being stuck to the tail of the conversation.

Error Messages/Logs

Steps to Reproduce

1. In ~/.claude/settings.json, set awsAuthRefresh to a valid AWS auth command that lets you control its exit code. Have it return exit code 0 initially.
2. Start a session with Claude Code and enter a prompt.
3. Set the AWS auth command to return exit code 1, then enter another prompt, triggering the auth error.
4. Set the AWS auth command to return exit code 0, then enter another prompt.

Claude Model

Opus

Is this a regression?

I don't know

Last Working Version

_No response_

Claude Code Version

2.1.107 (Claude Code)

Platform

AWS Bedrock

Operating System

macOS

Terminal/Shell

VS Code integrated terminal

Additional Information

_No response_