[BUG] Warning anytime I create a new session about environments

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 I create a new session by clicking the + button next to the folder name in the left sidebar I get a warning with the following message.

Couldn’t switch environments: the Local environment isn’t available anymore.

I noticed this once the new session side rail started showing up today

What Should Happen?

My local environment and folder still exist, I shouldn't get a warning

Error Messages/Logs

Steps to Reproduce

1. Click the + button next to a folder/repo in the left nav
2. See the warning message in the bottom right

Claude Model

_No response_

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

2.37337.1 (Windows Desktop)

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

Other

Additional Information

_No response_