[BUG] Console output on Windows is overwritten during file edits, making conversation history unreadable

Description:
Claude Code uses ANSI escape codes to update the terminal during operations, which almost completely overwrites and destroys the conversation history. This makes the tool effectively unusable for its intended purpose - interactive code development with context.

Steps to Reproduce:

1. Start Claude Code in interactive mode (default) on Windows
2. Have a conversation that includes file edits
3. Observe that when file edits occur, the terminal cursor moves up and overwrites previous conversation text
4. Previous responses become unreadable/lost

Expected Behavior:

• All conversation history should remain visible and readable
• File edit confirmations should append to the output, not overwrite it
• Users should be able to scroll back and see the entire conversation

Actual Behavior:

• ANSI escape codes (likely \033[F, \033[K, etc.) are used to move cursor and clear lines
• Previous conversation text is overwritten
• Context is lost, making it impossible to follow the conversation
• Users cannot see what Claude wrote before making edits

Impact:

• Severity: CRITICAL - This breaks the fundamental use case of the application
• Makes interactive mode unusable for any real work
• Forces users to use --no-interactive which defeats the entire purpose
• Paying customers cannot confidently use the product

Environment:

• OS: Windows (confirmed on multiple terminals)
• Tested on: Windows Terminal, Command Prompt, PowerShell - same behavior on all
• Claude Code version: 1.0.58 (Claude Code)

Additional Notes:

• This is NOT a scrollback buffer issue
• This is NOT terminal-specific - happens on every Windows terminal tested
• This appears to be a fundamental issue with how Claude Code writes to the console on Windows

Suggested Fix:
Add option to remove all cursor manipulation ANSI codes from the output. Use append-only output or separate the conversation view from status updates. Test thoroughly on Windows before release.

Business Impact:
As a Pro Max customer, this bug makes the product unusable for its core purpose. Interactive mode is the primary value proposition of Claude Code, and it's completely broken on Windows.

Additional Related Issue: Large edits are completely invisible before acceptance

Description:
When Claude Code proposes file edits:

• Small edits: User can see the changes before accepting/rejecting
• Large edits: The edit content is completely hidden, forcing blind acceptance/rejection

The Problem:
Users must make a decision about code changes without being able to review them. This is especially problematic when
combined with the console overwriting issue, because:

1. Claude's explanation of what the edit does gets overwritten
2. The actual edit content is invisible if it's large
3. User must blindly accept/reject
4. After acceptance, the conversation history is gone due to the overwriting bug

Expected Behavior:

• All edits should be reviewable before acceptance, regardless of size
• Options could include:
• Scrollable preview window
• "Show more" option
• Paging through large diffs
• At minimum: show first N lines with "... X more lines"

Actual Behavior:

• Large edits show no content at all
• User sees only "Accept/Reject" prompt with no context
• Must make decision blindly

Impact:

• Forces users to accept changes without review
• Breaks trust in the tool
• Combined with the overwriting bug, makes it impossible to understand what changes were made
• Security risk - can't review code before it's written to disk

This creates a perfect storm of unusability:

1. Claude explains the change (gets overwritten)
2. Edit preview is blank (can't see the change)
3. Must accept blindly
4. Console is overwritten (can't see what happened)
5. No way to understand what just changed in your codebase (without additional tools)

These two bugs together make Claude Code effectively unusable for any serious development work on Windows.