[BUG] Typing in the input box scrolling up clears the draft

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?

When I type a long message and try to scroll up to review it, the cursor movement triggers history navigation and clears everything I typed. Lost an hour of work this way. Input box needs to either be taller or not intercept scroll/arrow keys when the cursor is mid-text.

What Should Happen?

Scrolling up or pressing the up arrow key while the cursor is within typed text should move the cursor within the text, not navigate to previous messages or clear the input.

Error Messages/Logs

Steps to Reproduce

Open Claude Code in VSCode
Click the chat input box
Type a long message (more than 2-3 lines)
Press the up arrow key to scroll back through what you typed
Input clears and your draft is gone

Claude Model

Sonnet (default)

Is this a regression?

I don't know

Last Working Version

_No response_

Claude Code Version

Claude Code for VS Code v2.1.128

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

Terminal.app (macOS)

Additional Information

_No response_