[BUG] Git Bash terminals opening despite all terminal settings being disabled (Windows)

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

Multiple Git Bash terminal windows open and immediately close when using Claude Code,
even when all terminal display settings are disabled.

• OS: Windows 11 (after update october 28 2025)
• Claude Code Version: [after update october 27 2025]

What I've Tried

All these settings have NO EFFECT:

{
    "terminal.integrated.shellIntegration.enabled": false,
    "terminal.integrated.hideOnStartup": "always",
    "terminal.integrated.showWhenCommandExecutes": "never",
    "terminal.integrated.tabs.hideCondition": "never",
    "terminal.integrated.profiles.windows": {
        "Git Bash": null
    },
    "terminal.integrated.automationProfile.windows": {
        "path": "C:\\Windows\\System32\\WindowsPowerShell\\v1.0\\powershell.exe"
    },
    "terminal.integrated.enablePersistentSessions": false,
    "terminal.integrated.allowWorkspaceConfiguration": false
} 

### What Should Happen?

When terminal settings are configured to hide automation processes:
- `"terminal.integrated.showWhenCommandExecutes": "never"` 
- `"terminal.integrated.hideOnStartup": "always"`
- `"terminal.integrated.shellIntegration.enabled": false`

Claude Code should respect these settings and:

1. **Not display any terminal windows** when performing internal operations (like path conversions with cygpath)
2. **Execute background operations silently** without opening visible terminal windows
3. **Respect the user's terminal profile settings** - if Git Bash is set to `null` or PowerShell is the default, it should not force Git Bash
4. **Only show terminals when explicitly requested** by user actions or when running actual Bash commands that need user visibility

The current behavior disrupts the user experience by opening multiple distracting terminal windows that flash on screen, even for simple operations like reading files or sending messages.

### Error Messages/Logs

```shell

Steps to Reproduce

Steps to Reproduce

1. Open any project in VSCode with Claude Code
2. Send any message to Claude (even simple questions)
3. Or ask Claude to read any file
4. Multiple Git Bash terminals open briefly showing: /usr/bin/bash --login -i -c cygpath -u 'c:\[path]'
5. Terminals close immediately but are visible

Claude Model

Not sure / Multiple models

Is this a regression?

I don't know

Last Working Version

_No response_

Claude Code Version

2.0.28

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

VS Code integrated terminal

Additional Information

_No response_