It appears that there is an ongoing Github issue about it: https://github.com/anthropics/claude-code/issues/47887

It's a regression from Claude Code team, you must downgrade your version now to login `npm install -g @anthropic-ai/claude-code@2.1.101`.

Warning everyone: Do not log-out as you'll not be able to Login anymore, this isn't a downtime, it's a Claude code issue (offline issue).