[BUG] Edit tool fails with "File has been unexpectedly modified" CRITICAL

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?

EDIT AND UPDATE TOOL DOES NOT WORK.
ONLY NEW FILE WRITE WORKS.

RECENT VERSION PATCH CREATED CRITICAL ISSUE

IT KEEPS READ UPDATE FAIL READ UPDATE FAIL READ UPDATE FAIL READ UPDATE FAIL

THIS IS EMERGENCY BUG THAT NEEDS TO BE HANDLED IMMEDIATELY

What Should Happen?

Edit successfully after read

Error Messages/Logs

Steps to Reproduce

Edit existing file

Claude Model

None

Is this a regression?

Yes, this worked in a previous version

Last Working Version

Any before most recent version

Claude Code Version

1.0.111

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

VS Code integrated terminal

Additional Information

_No response_