[Bug] Chat display issues with excessive spacing and missing content after recent updates

[dlprentice]

Bug Description So, my chats have had lots of spacing and content not being displayed since the recent updates (instant compact, flickering reduction)...

Environment Info

• Platform: win32
• Terminal: windows-terminal
• Version: 2.0.73
• Feedback ID: 3620acd8-3059-488a-a8bf-6a736b912077

Spacing issues:

Errors

[{"error":"Error\n    at Eu (B:/~BUN/root/claude.exe:58:1144)\n    at <anonymous> (B:/~BUN/root/claude.exe:59:10093)\n    at emit (node:events:92:22)\n    at endReadableNT (internal:streams/readable:861:50)\n    at processTicksAndRejections (native:7:39)\n    at request (B:/~BUN/root/claude.exe:61:2149)\n    at processTicksAndRejections (native:7:39)","timestamp":"2025-12-19T12:27:17.994Z"},{"error":"Error\n    at Eu (B:/~BUN/root/claude.exe:58:1144)\n    at <anonymous> (B:/~BUN/root/claude.exe:59:10093)\n    at emit (node:events:92:22)\n    at endReadableNT (internal:streams/readable:861:50)\n    at processTicksAndRejections (native:7:39)\n    at request (B:/~BUN/root/claude.exe:61:2149)\n    at processTicksAndRejections (native:7:39)","timestamp":"2025-12-19T12:27:17.998Z"},{"error":"Error\n    at Eu (B:/~BUN/root/claude.exe:58:1144)\n    at <anonymous> (B:/~BUN/root/claude.exe:59:10093)\n    at emit (node:events:92:22)\n    at endReadableNT (internal:streams/readable:861:50)\n    at processTicksAndRejections (native:7:39)\n    at request (B:/~BUN/root/claude.exe:61:2149)\n    at processTicksAndRejections (native:7:39)","timestamp":"2025-12-19T12:27:18.410Z"}]