[BUG] VS Code: drag and drop files inserts them in the wrong location

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 drag a file into VS Code Claude Code plugin, it injects it at cursor location correctly.

HOWEVER, after pressing shift+return, it will insert it at the wrong location. It counts the characters in the line after shift+return, and injects it that many characters _after the beginning of the whole message_. Eg, if I say "test", it injects @myfile at character 4 from the beginning of the whole message -- not at character 4 of the last line.

What Should Happen?

Insert @file context at cursor location.

Error Messages/Logs

Steps to Reproduce

1. Write "something here"
2. Press shift+return
3. Write "hi"
4. Drag file from vs code sidebar into Claude Code area
5. Observe that your message now looks like this:

so @yourfile mething here
hi

Claude Model

None

Is this a regression?

No, this never worked

Last Working Version

_No response_

Claude Code Version

vs code plugin 2.0.34

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

VS Code integrated terminal

Additional Information

_No response_