Unfortunately they seem to have straight up broken Claude Code either with this release in the backend or the new CC version. Errors about "can't modify thinking blocks" are bricking long-running sessions: https://github.com/anthropics/claude-code/issues?q=is%3Aissu...
I'm on the latest version (2.1.154 as of this comment). Based on the timestamps on those Issues being reported I think it's happening on the latest version.
I'm sure it will get fixed eventually/soon, just annoying to update and have your workflow break.
I managed to get claude to create a recovery script to un-brick sessions, YMMV
https://gist.github.com/robertfw/993dbe8643c4fbdf12005dff2ec...