[BUG] Updated VSCode extension to 2.0.37 and getting TypeError

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?

I upgraded the VSCode extension to 2.0.37 and since then, when launching Claude (either in the GUI or Terminal), I'm getting an error.

What Should Happen?

A new discussion should start.

Error Messages/Logs

TypeError: Cannot read properties of undefined (reading 'prototype')
    at file:///opt/homebrew/lib/node_modules/@anthropic-ai/claude-code/cli.js:386:25504
    at file:///opt/homebrew/lib/node_modules/@anthropic-ai/claude-code/cli.js:10:401
    at file:///opt/homebrew/lib/node_modules/@anthropic-ai/claude-code/cli.js:386:25624
    at file:///opt/homebrew/lib/node_modules/@anthropic-ai/claude-code/cli.js:10:401
    at file:///opt/homebrew/lib/node_modules/@anthropic-ai/claude-code/cli.js:388:3218
    at file:///opt/homebrew/lib/node_modules/@anthropic-ai/claude-code/cli.js:10:401
    at file:///opt/homebrew/lib/node_modules/@anthropic-ai/claude-code/cli.js:388:6240
    at file:///opt/homebrew/lib/node_modules/@anthropic-ai/claude-code/cli.js:10:401
    at file:///opt/homebrew/lib/node_modules/@anthropic-ai/claude-code/cli.js:388:7445
    at file:///opt/homebrew/lib/node_modules/@anthropic-ai/claude-code/cli.js:10:401

Node.js v25.1.0

Steps to Reproduce

1. Install Claude Code 2.0.37 in Cursor (what I'm using: Version: 2.0.69 (Universal), VSCode Version: 1.99.3)
2. Start a new Claude window through the Command Palette (is also not working by clicking on the Claude icon in the top tabs)
3. Error.

Claude Model

Not sure / Multiple models

Is this a regression?

Yes, this worked in a previous version

Last Working Version

Not sure what was my previous version but I haven't updated in a few weeks.

Claude Code Version

This command also errors out.

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

Terminal.app (macOS)

Additional Information

_No response_