[BUG] VS Code Extension Defaulting To Sonnet, Ignoring Model Setting

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?

In VS Code Claude Code extension:

Select model:

<img width="560" height="576" alt="Image" src="https://github.com/user-attachments/assets/5290efd4-32c7-4ac9-b742-6f39eb5f243b" />

Can choose default or specifically Opus:

<img width="560" height="576" alt="Image" src="https://github.com/user-attachments/assets/1d02635c-0d55-4e61-9fe2-760c2555b152" />

Let's try force Opus.

Test:

<img width="546" height="339" alt="Image" src="https://github.com/user-attachments/assets/7b98afcd-914c-44fb-bd4a-1423d4e13252" />

But if I start a new session, lo and behold, the selection has mysteriously reset itself to Sonnet!

<img width="563" height="614" alt="Image" src="https://github.com/user-attachments/assets/b1614fb6-dcb6-4922-8a34-599575834d28" />

This is particularly strange given that my default model via the "regular" CLI has held:

<img width="565" height="300" alt="Image" src="https://github.com/user-attachments/assets/66e14673-aa6d-42f7-8eb2-6e73093c5841" />

What Should Happen?

Claude Code VS Code Extension should both:

1) Honor model preference of the CLI

2) Honor any user-overrides in the IDE

Error Messages/Logs

Steps to Reproduce

Pretty sure yes

Claude Model

None

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

v2.0.75

Platform

Other

Operating System

Ubuntu/Debian Linux

Terminal/Shell

Terminal.app (macOS)

Additional Information

_No response_