[BUG] VSCode Extension Ignores .gitignore When Linking Files With `@`

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?

When using the VSCode extension, trying to add files as context with @ looks up files that are in my .gitignore config:

<img width="662" height="404" alt="Image" src="https://github.com/user-attachments/assets/d537a953-23b8-4ad4-a6e4-4045f5648650" />

When I try the same in claude code in the terminal I do not get this issue (.gitignore is respected). This is in the same repo for both:

<img width="362" height="186" alt="Image" src="https://github.com/user-attachments/assets/72e4b1a5-d6ce-45bd-a010-f8c7e7ad809a" />

What Should Happen?

Claude should respect my .gitignore when adding files to the context with @ from both the terminal and VSCode extensions

Error Messages/Logs

Steps to Reproduce

1. Create .gitignore and add files to it
2. Create files that are ignored (in my case it is files created by the local history extension)
3. Start a chat with cmd+esc
4. Add a file with @ and see that the extension suggests files that are in the gitignore

Claude Model

Sonnet (default)

Is this a regression?

I don't know

Last Working Version

_No response_

Claude Code Version

v2.0.26

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

Other

Additional Information

_No response_