Bug Report `claude --continue` flag prevents typing/input

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?

Description:
When running claude --continue, Claude Code opens but the terminal becomes unresponsive - I cannot type or
provide any input. This was working earlier today on version 2.0.1, but now fails on both 2.0.1 and 2.0.10.

Workaround:
Running claude without the --continue flag, then using /resume command works as expected and allows normal input.

What Should Happen?

Expected Behavior:
Should be able to type and interact with Claude Code normally, continuing the previous session.

Error Messages/Logs

**Actual Behavior:**
  Terminal accepts no input when using `--continue` flag.

Steps to Reproduce

Steps to Reproduce:

1. Run claude --continue in terminal
2. Observe that Claude Code opens but input is blocked
3. Cannot type anything

Claude Model

Not sure / Multiple models

Is this a regression?

Yes, this worked in a previous version

Last Working Version

2.0.01

Claude Code Version

2.0.10 (Claude Code)

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

PowerShell

Additional Information

The same problem happens whether I run it in powershell or cmd