[BUG] Dictation (mic) in Claude Code desktop: wrong cursor insertion point, breaks bullet lists, and blocks manual edits while recording

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?

Environment: Claude Code desktop app, Windows 10

Description:

Using the microphone/dictation feature in the Claude Code desktop app has three related issues:

Cursor position ignored on insert — When dictation transcribes text, it doesn't insert at the current cursor position. Instead it starts inserting somewhere in the middle of the existing text, rather than exactly where the cursor was placed.
Poor handling of bullet points/lists — Dictated text doesn't integrate well with bullet-point formatting (e.g., doesn't respect list structure, or breaks/merges bullets incorrectly).
Manual edits are reverted while recording — If you try to edit any text (including text the dictation just created) while the mic is still actively recording, the edit is automatically undone. Editing is only possible after turning the mic off.

What Should Happen?

Expected behavior: Dictated text should insert exactly at the cursor position, respect list/bullet formatting, and manual text edits should not be reverted while recording is in progress.

Error Messages/Logs

Steps to Reproduce

..just open mic and do it on chat

Claude Model

None

Is this a regression?

No, this never worked

Last Working Version

_No response_

Claude Code Version

2.1.160 (Claude Code)

Platform

Other

Operating System

Windows

Terminal/Shell

Windows Terminal

Additional Information

_No response_