[BUG] VSCode extension sets DEBUG=1, causing shell environment polution

Preflight Checklist

• [x] I have searched existing issues and this hasn't been reported yet
• [x] This is a single bug report (please file separate reports for different bugs)
• [x] I am using the latest version of Claude Code

What's Wrong?

We've been struggling to figure this out for a few days, but finally found it. The VSCode Claude Extension (extension.js) is explicitly setting DEBUG=1 in the shell environment:

% prettier ~/.vscode/extensions/anthropic.claude-code-2.0.24-darwin-arm64/extension.js > extension.js
% grep 'process.env.DEBUG = "1"'  extension.js -B10 -A10
      }
  }
  async launchClaude(e, r, s, a, i, n) {
    if (
      (this.logger.log(`Launching Claude on channel: ${e}`),
      this.channels.has(e))
    )
      throw new Error(`Channel already exists: ${e}`);
    try {
      let o = new $n();
      process.env.DEBUG = "1";
      let l = this.spawnClaude(
        o,
        r,
        async (c, u, p) =>
          this.requestToolPermission(e, c, u, p.suggestions || []),
        a || null,
        s,
        i,
        this.getMaxThinkingTokensForModel(n),
      );

Setting DEBUG=1 causes all kinds of noise to be emitted by common packages like kube-ps1.sh. Related issue https://github.com/anthropics/claude-code/issues/10027 is simillar.

Ultimately I don't think the claude code action should be setting ANY environment variables that are not explicitly targeted at Claude behavior.

What Should Happen?

Do not set/override environment variables

Error Messages/Logs

Steps to Reproduce

Load the extension, createa claude window, and open a shell.. then echo $DEBUG

Claude Model

Sonnet (default)

Is this a regression?

I don't know

Last Working Version

_No response_

Claude Code Version

2.0.13

Platform

AWS Bedrock

Operating System

macOS

Terminal/Shell

VS Code integrated terminal

Additional Information

_No response_