[BUG] shift+enter config via /terminal-setup not working (ubuntu 24)

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?

from /doctor:

 Diagnostics
 └ Currently running: npm-local (1.0.112)
 └ Path: /usr/bin/node
 └ Invoked: /home/hytuye/.claude/local/node_modules/.bin/claude
 └ Config install method: local
 └ Auto-updates enabled: default (true)
 └ Search: OK (vendor)

i suddenly lost use of shift+enter newline key in cursor-claude code. Everytime I try to run /terminal-setup i get stuck in a loop of trying to overwrite the existing setup.

<img width="914" height="187" alt="Image" src="https://github.com/user-attachments/assets/802ff957-22db-4708-93ac-b7d44559c4e3" />

Existing config:

    {
        "key": "shift+enter",
        "command": "workbench.action.terminal.sendSequence",
        "args": {
            "text": "\\\r\n"
        },
        "when": "terminalFocus"
    }

/terminal-setup seems to create a similar short cut the system one shown here, should i delete the system one?

<img width="2188" height="58" alt="Image" src="https://github.com/user-attachments/assets/e47b6a55-93b4-425e-9357-40557abe4f7f" />

What Should Happen?

shift+enter should create newline

Error Messages/Logs

see above screenshots

Steps to Reproduce

install latest cursor and cc in ubuntu 24

Claude Model

Sonnet (default)

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

1.0.112

Platform

Anthropic API

Operating System

ubuntu 24 LTS

Terminal/Shell

Cursor Terminal

Additional Information

_No response_