[BUG] Characters å,ä and ö are replaced with � when Claude Code edit files

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 have the issue that when teh characters å, ä or ö exists in the source code files they are removed and replaced with a � when Claude Code edit these files.

What Should Happen?

I expect the characters å, ä and ö to be preserved when Claude Code are edit files.

Error Messages/Logs

Steps to Reproduce

1. Start Claude Code
2. Tell it to edit files with å, ä or ö
3. Look at the files and the characters have been replaced with �

Claude Model

Sonnet (default)

Is this a regression?

I don't know

Last Working Version

_No response_

Claude Code Version

1.0.109

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

Windows Terminal

Additional Information

_No response_