[BUG] vscode Plan mode saves files to system directory instead of project directory

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 using plan mode in a project that has a .claude/plans/ directory, Claude Code saves plan files to the system-level ~/.claude/plans/ directory instead of the project-level .claude/plans/ directory. Expected Behavior: According to the documentation, Claude Code should prioritize the project-level directory:
Project-level: .claude/plans/ (checked first)
System-level: ~/.claude/plans/ (fallback)
Plan files are always saved to ~/.claude/plans/ regardless of whether a project-level .claude/plans/ directory exists. Steps to Reproduce:
Open a project in VSCode that contains a .claude/plans/ directory
Verify the current working directory is the project root (e.g., /Users/me/project)
Enter plan mode
Observe that the plan file path is set to ~/.claude/plans/<random-name>.md instead of /Users/me/project/.claude/plans/<random-name>.md

What Should Happen?

plan file should be written to the project directory

Error Messages/Logs

Steps to Reproduce

Plan files are always saved to ~/.claude/plans/ regardless of whether a project-level .claude/plans/ directory exists. Steps to Reproduce:
Open a project in VSCode that contains a .claude/plans/ directory
Verify the current working directory is the project root (e.g., /Users/me/project)
Enter plan mode
Observe that the plan file path is set to ~/.claude/plans/<random-name>.md instead of /Users/me/project/.claude/plans/<random-name>.md

Claude Model

None

Is this a regression?

I don't know

Last Working Version

_No response_

Claude Code Version

2.0.70

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

VS Code integrated terminal

Additional Information

_No response_