[BUG] Design flaw? Run from a directory containing a `.env`

Environment

• Platform (select one):
• [ ] Anthropic API
• [ ] AWS Bedrock
• [ ] Google Vertex AI
• [x] Other: Claude Code CLI
• Claude CLI version: 0.2.48
• Operating System: Ubuntu (running in WSL2 on Windows)
• Terminal: WSL Ubuntu terminal

Bug Description

Claude Code CLI fails with "404 Invalid response body while trying to fetch https://api.anthropic.com/v1/messages?beta=true: Premature close" when run from a directory containing a .env file with HTTP_PROXY settings.

Steps to Reproduce

1. Create or navigate to a directory containing a .env file with HTTP_PROXY=some-proxy-server:port
2. Attempt to run Claude Code CLI from this directory
3. Observe failure with 404 error or indefinite "Calculating..." state

Expected Behavior

Claude Code should either:

1. Not automatically pick up HTTP_PROXY settings from local .env files, or
2. Document this behavior clearly, or
3. Provide a way to override these settings without modifying the .env file

Actual Behavior

When run from a directory with HTTP_PROXY defined in .env ((PHP/Symfony project in my case), Claude Code attempts to route all API traffic through that proxy server, resulting in connection failures. The error appears as either "API Error: 404 Invalid response body" or an endless "Calculating..." state.

Additional Context

• The issue only occurs in directories with .env files containing proxy settings
• Temporarily fixing by running HTTP_PROXY= HTTPS_PROXY= claude-code -v works as a workaround
• This creates confusion as the error doesn't clearly indicate the proxy connection is the issue
• The problem persists even after Docker is stopped (which was initially suspected as the cause)