[BUG] Submodules cannot be initialized anymore since update from yesterday (Cloud/Remote)

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?

I am using Claude Code in the Cloud.
It is not possible anymore to checkout my Github project with two submodules which was working unitl yesterday.
The submodule is public and there are no restrictions. The submodule is also part of my organization.

Related to: https://github.com/anthropics/claude-code/issues/59570

What Should Happen?

-

Error Messages/Logs

-

Steps to Reproduce

-

Claude Model

None

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

Cloud

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

Other

Additional Information

_No response_