[BUG] VSCode extension goes fully white in new folder when accepting permission "yes and don't ask again"

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?

Using Identifier
anthropic.claude-code
Version
2.0.62
Last Updated
1 day

I have a completely new folder (no previous project/current files here), as I have no code, I am telling CC to process a previous project folder that is path-relative.

I send the prompt and it asks for permission to read that other folder (which is above the current project root)
This is fine, I can press 'yes' and it carries on, but as the permission prompts are disruptive, I want to press "yes and don't ask again", e.g. save this permission

When I press this, the VSCode extension window goes completely white and I lose the session/chat

Here is a screen recording of the issue converted to gif showing the issue

!Image

What Should Happen?

Claude should write the ./.claude/settings.local.json file with the permissions in it and continue with the task

Error Messages/Logs

Steps to Reproduce

1. Using vscode and latest CC
2. Create a new blank folder
3. Open this folder in vscode
4. Start CC
5. Prompt it to do something that is going to ask for permission (in my case this was scan another folder outside the project root)
6. When it asks for permission, click 'yes and don't ask again'

Claude Model

Sonnet (default)

Is this a regression?

I don't know

Last Working Version

_No response_

Claude Code Version

2.0.62

Platform

Other

Operating System

Windows

Terminal/Shell

VS Code integrated terminal

Additional Information

VS code extension