VS Code extension ignores proxy settings from ~/.claude/settings.json and environment variables

Description

The VS Code extension does not respect proxy settings, while the CLI works correctly with the same configuration.

Environment

• OS: Linux (Ubuntu)
• CLI Version: 2.0.76
• VS Code Extension Version: 2.0.75

Configuration

~/.claude/settings.json

{
  "model": "opus",
  "env": {
    "BASH_DEFAULT_TIMEOUT_MS": "600000",
    "BASH_MAX_TIMEOUT_MS": "1800000",
    "HTTP_PROXY": "http://127.0.0.1:10808",
    "HTTPS_PROXY": "http://127.0.0.1:10808"
  }
}

VS Code settings.json

{
  "http.proxySupport": "on",
  "http.proxy": "http://127.0.0.1:10808",
  "http.proxyStrictSSL": false,
  "claudeCode.environmentVariables": [
    { "name": "HTTP_PROXY", "value": "http://127.0.0.1:10808" },
    { "name": "HTTPS_PROXY", "value": "http://127.0.0.1:10808" }
  ]
}

Behavior

| Setting | CLI | VS Code Extension |
|---------|-----|-------------------|
| ~/.claude/settings.json env vars | ✅ Works | ❌ Ignored |
| Shell HTTP_PROXY / HTTPS_PROXY | ✅ Works | ❌ Ignored |
| VS Code http.proxy setting | N/A | ❌ Ignored |

Steps to Reproduce

1. Configure proxy in ~/.claude/settings.json as shown above
2. Configure proxy in VS Code settings as shown above
3. Launch VS Code with proxy environment variables:

``bash
export HTTP_PROXY=http://127.0.0.1:10808
export HTTPS_PROXY=http://127.0.0.1:10808
code --proxy-server=http://127.0.0.1:10808
``

1. Try to use Claude Code extension - it hangs on "Imagining..." and cannot connect to the API
2. In the same terminal, run claude CLI - it works correctly

Verification

The proxy itself works correctly:

curl -x http://127.0.0.1:10808 https://api.anthropic.com/v1/messages
# Successfully connects through proxy

Expected Behavior

The VS Code extension should respect proxy settings from:

1. ~/.claude/settings.json env section (shared with CLI)
2. VS Code's http.proxy setting
3. HTTP_PROXY / HTTPS_PROXY environment variables

Workaround

Currently the only workaround is to use proxychains4 to force the proxy:

proxychains4 code

Root Cause (Suspected)

Node.js native fetch (used by the Anthropic SDK) does not automatically respect HTTP_PROXY environment variables. The extension may need to configure a proxy-aware HTTP agent.