There is a setting that fixes this, I can't remember what it's called off the top of my head
"Oh yeah, just go to Settings > Bugs Enabled and turn OFF text display errors"
This is a beta feature where Claude code draws the interface on the terminal’s alternate screen buffer like vim or htop. I believe it’s not the default because there are some potential compatibility issues deepening on your terminal setup. I’ve found it to be a nice improvement. It also fixed the issue where copy-pasting selected text from the terminal creates unwanted line breaks.