[BUG] Up-Down cursor navigation in some menus (MCP servers, Rewind) broken and freezes Claude Code

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?

Some of the menus that are navigated with Up-Down cursor keys, stopped working in recent Claude Code (2.1.118), and instead cause Claude Code to freeze.

It happens at least in history/Rewing menu (press ESC in the prompt), and in the /mcp command; maybe more menus. Does NOT happen in the initial list of sessions; in the "Resume from summary/Resume full session" selector, after pressing "/" to choose the skills/commands; in commands like /plugins or /config – all of these above work well with up/down cursor keys.

What Should Happen?

Up/Down navigation in command history and in /mcp command works and doesn't freeze Claude Code.

Error Messages/Logs

Steps to Reproduce

1. Start a Claude session. Launch some commands.
2. Either press ESC two times, to enter the history; or launch /mcp command.

Claude Model

Opus

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

2.1.118

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

Terminal.app (macOS)

Additional Information

_No response_