ProcessOutput() in the readLoop was processing every byte of SSH output,
looking for OSC 7 sequences. When these sequences split across read
boundaries (common with 32KB buffer), partial sequences leaked through
and corrupted xterm.js parser state — producing red/green color blocks
instead of text, and characters rendering at wrong widths.
Reverted readLoop to direct passthrough (v0.7.3 behavior). Also removed
shell integration injection (stty -echo + PROMPT_COMMAND) which caused
terminal mode disruption on macOS. Also removed 4px xterm padding that
could cause fitAddon cell width miscalculation.
CWD tracking will be re-implemented via a separate SSH exec channel
that polls pwd without touching the terminal data stream.
Co-Authored-By: Claude Opus 4.6 (1M context) <noreply@anthropic.com>