[BUG] VS Code Integrated terminal still not working with IDE features

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?

Description

The VS Code integrated terminal is not properly connecting or working with Claude Code IDE features, preventing seamless development workflow integration.

Environment

• OS: Windows (win32)
• IDE: VS Code
• Claude Code Version: lastest + every version for the past 3 months

Current Behavior

When using Claude Code within the VS Code integrated terminal, IDE-specific features are not functioning as expected. This includes:

• Terminal integration features
• IDE extension connectivity
• Automatic context detection
• Potential issues with terminal emulation or shell environment

What Should Happen?

Expected Behavior

Claude Code should seamlessly integrate with the VS Code integrated terminal, providing:

• Full IDE feature support
• Automatic detection of VS Code environment
• Proper terminal integration
• Extension connectivity when available

Error Messages/Logs

Steps to Reproduce

• Start VS Code
• Use integrated terminal

Claude Model

None

Is this a regression?

I don't know

Last Working Version

_No response_

Claude Code Version

Claude Doctor reports: Currently running: unknown (2.0.24)

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

VS Code integrated terminal

Additional Information

_No response_