Do not render mcp responses as markdown (#1388)

packages/cli/src/ui/components/messages/ToolMessage.tsx

@@ -44,6 +44,13 @@ export const ToolMessage: React.FC<ToolMessageProps> = ({
       )
     : undefined;
 
+  // Long tool call response in MarkdownDisplay doesn't repect availableTerminalHeight properly,
+  // we're forcing it to not render as markdown when the response is too long, it will fallback
+  // to render as plain text, which is contained within the terminal using MaxSizedBox
+  if (availableHeight) {
+    renderOutputAsMarkdown = false;
+  }
+
   const childWidth = terminalWidth - 3; // account for padding.
 
   return (