[BUG] VS Code extension forces re-reading files provided in context

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 providing files in context using @ notation, Claude sees them without specifically reading them, and tries to make edits, and always fails with 'Edit failed' and then says 'I need to read the file first.' and then reads it and then edits it.

What Should Happen?

It should be able to edit files that were already provided in context. At the very least there should be a configuration option to turn this enforcement off.

Error Messages/Logs

Steps to Reproduce

1. Run Claude Code in VS Studio plugin (eg Cursor) and include files using @ notation.
2. Watch as it fails to edit each file time and time again.

Claude Model

None

Is this a regression?

I don't know

Last Working Version

_No response_

Claude Code Version

2.0.34 (plugin)

Platform

Other

Operating System

macOS

Terminal/Shell

VS Code integrated terminal

Additional Information

_No response_