Unable to type in input box of claude code

IDE is connected in VS code but I am not able to type inside the claude code input box in the terminal. Attaching the screenshot. When I type it shows the character being typed outside the input box. But when I hit enter the text moves to input box and stays there and nothing happens. Claude code gives no response. There is no connection problem although.

<img width="898" height="1766" alt="Image" src="https://github.com/user-attachments/assets/c191f81c-e5f3-40a0-bbcb-790bd23d704c" />