Terminal rendering corruption: /context output overlaps with diff/tool output

Description

The /context command output frequently overlaps with other terminal output (diff views, MCP tool lists, etc.), making it unreadable. This has been happening consistently over the past ~10 days.

Environment

• Claude Code version: Latest (as of 2026-04-16)
• Terminal: macOS native Terminal.app (no recent updates to terminal emulator — issue is on Claude Code side)
• OS: macOS (Darwin 25.2.0, Apple Silicon)
• Model: claude-opus-4-6[1m]

Steps to Reproduce

1. Run a session with multiple tool calls (MCP tools, git operations, etc.)
2. Run /context to check token usage
3. The output renders with overlapping text — MCP tool names, diff hunks, and context stats bleed into each other

Expected Behavior

/context output should render cleanly without overlapping other content.

Actual Behavior

Text from different output sections (diff views, MCP tool lists, context stats) overlap and become unreadable. See screenshots below.

Screenshots

Screenshot 1 — Diff output overlapping with /context and MCP tool list

The left side shows diff hunks ("Added 47 lines", WORK_LOG content) while the right side shows MCP tool names, creating an unreadable mess.

<img width="960" height="1321" alt="Image" src="https://github.com/user-attachments/assets/909630dc-392c-4a03-8ee4-c5294d0e87e8" />

Screenshot 2 — Continued overlap

MCP tool list continues to overlap with other UI elements (sidebar labels like /wl, Del, Bas, Fla> appear on the left margin).

<img width="951" height="1305" alt="Image" src="https://github.com/user-attachments/assets/91f87ae7-fa15-43c9-9e04-66dc1d3d03d5" />

Notes

• The terminal emulator has not been updated recently — this is a Claude Code rendering regression
• Started approximately 10 days ago (around early April 2026)
• Happens across multiple sessions, not a one-off