[BUG] Update first-attempt-failed message once second attempt is underway

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?

When the first attempt to do something fails, a message is printed that says something like "first attempt failed (1 out of 10)", but that message is never retracted until the second attempt is finished (or at least well underway). Classify this as a [FEATURE] if you want, but I think it falls in the category of poor UX experience that should be improved, not a category you have.

What Should Happen?

Instead the "first attempt failed" (caused by poor internet connections or Anthropic microservices down) should be retracted after the second attempt is successfully under way.

Error Messages/Logs

Steps to Reproduce

Use claude </> code for a while with a poor internet connection or on a bad day for Anthropic micro services.

Claude Model

None

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

babe1

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

Terminal.app (macOS)

Additional Information

_No response_