[BUG] Unable to select file using arrows

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 i try to add files, i have to select files that i want with cursor instead of arrows.

What Should Happen?

I'm able to freely use arrows to navigate between files/directories

Error Messages/Logs

Steps to Reproduce

1. type @ then file selector appears
2. must use cursor, can't navigate using keyboard's arrow

Claude Model

Sonnet (default)

Is this a regression?

Yes, this worked in a previous version

Last Working Version

1.0.26

Claude Code Version

2.0.1

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

VS Code integrated terminal

Additional Information

_No response_