Mouse drag text selection still broken in VS Code terminal on 2.1.245 despite CLAUDE_CODE_DISABLE_MOUSE_CLICKS=1 (regression of #72173)

Environment

• Claude Code: 2.1.245
• OS: macOS (Darwin 24.6.0)
• Terminal: VS Code integrated terminal (TERM_PROGRAM=vscode, TERM=xterm)
• Renderer: fullscreen TUI
• Settings: CLAUDE_CODE_DISABLE_MOUSE_CLICKS=1 set in ~/.claude/settings.json env block

Bug
Click-drag text selection in the terminal is still broken while Claude Code is running, even with CLAUDE_CODE_DISABLE_MOUSE_CLICKS=1 set. Mouse reporting still swallows the drag, so nothing gets selected and Cmd+C copies nothing.

This is the same behavior as #72173, which is closed, but it still reproduces on 2.1.245.

Steps to reproduce

1. macOS, VS Code integrated terminal, fullscreen renderer.
2. Add "CLAUDE_CODE_DISABLE_MOUSE_CLICKS": "1" to the env block of ~/.claude/settings.json.
3. Start claude and try to click-drag to select any text in the terminal.

Expected
Native terminal text selection works (that is the documented purpose of the env var).

Actual
Drag selection does not select anything; mouse events are still captured.

Workaround in use
Falling back to CLAUDE_CODE_DISABLE_MOUSE=1 to disable mouse capture entirely.