[BUG] Native UI mode hangs on shell snapshot creation with SIGTERM timeout on Windows

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?

Environment:

• OS: Windows (with WSL installed)
• Claude Code version: 2.0.75
• VS Code version: [your version]
• Git Bash installed at: C:\Program Files\Git\bin\bash.exe

Issue Description:
Claude Code native UI mode hangs for 30+ seconds when attempting to respond to any prompt. The extension eventually crashes with shell snapshot creation errors. Terminal mode works perfectly fine.

Error Logs:
Using bash path: "C:\Program Files\Git\bin\bash.exe"
Shell snapshot creation failed
Error signal: SIGTERM
Error killed: true

When Git Bash is unavailable (renamed), Claude Code crashes immediately with:
Claude Code was unable to find CLAUDE_CODE_GIT_BASH_PATH path "C:\Program Files\Git\bin\bash.exe"
Error: Claude Code process exited with code 1

Steps to Reproduce:

1. Open Claude Code in native UI mode (panel/editor view, not terminal)
2. Send any message
3. Wait 30+ seconds
4. Extension hangs and fails with SIGTERM timeout

Expected Behavior:
Claude Code should respond quickly without shell snapshot timeouts.

Current Workaround:
Terminal mode (claudeCode.useTerminal: true) works fine without any delays.

What I've Tried (None worked):

• Setting claudeCode.shell.path to PowerShell in VS Code settings
• Setting VS Code default terminal to PowerShell
• Running wsl --update (issue started after WSL update prompt appeared)
• Reinstalling Claude Code extension
• Clearing C:\Users\[username]\.claude\shell-snapshots\ folder
• Renaming bash.exe (causes immediate crash instead)

Configuration:
VS Code settings.json:
{
"claudeCode.shell.path": "C:\\Windows\\System32\\WindowsPowerShell\\v1.0\\powershell.exe",
"claudeCode.shell.args": ["-NoProfile", "-NoLogo"],
"terminal.integrated.defaultProfile.windows": "PowerShell",
"claudeCode.useTerminal": true // Current workaround
}

Key Observations:

1. Claude Code appears to ignore claudeCode.shell.path setting and forces Git Bash usage
2. There seems to be a hardcoded CLAUDE_CODE_GIT_BASH_PATH that overrides user settings
3. Shell snapshot creation consistently times out with Git Bash on this system
4. Terminal mode has no issues whatsoever
5. Issue potentially started after a recent WSL update

What Should Happen?

• Allow users to completely disable Git Bash and force PowerShell usage in native UI mode
• OR fix the shell snapshot timeout issue with Git Bash
• OR make native UI mode work without shell snapshots (like terminal mode does)

Error Messages/Logs

Using bash path: "C:\Program Files\Git\bin\bash.exe"
  Shell snapshot creation failed
  Error signal: SIGTERM
  Error killed: true

Steps to Reproduce

1. Install Claude Code extension on Windows with Git Bash and WSL installed
2. Configure VS Code settings to use PowerShell (though Claude Code ignores this):

```json
{
"claudeCode.shell.path": "C:\\Windows\\System32\\WindowsPowerShell\\v1.0\\powershell.exe",
"claudeCode.useTerminal": false
}

1. Open any folder in VS Code
2. Open Claude Code in native UI mode (panel or editor view, NOT terminal mode)
3. Type any simple message like "hello" and press enter
4. Observe: Claude Code hangs for 30+ seconds with no response
5. Check the Output panel (View → Output → Select "Claude Code" from dropdown)
6. See errors about shell snapshot creation failing with SIGTERM

Expected: Claude responds immediately
Actual: 30+ second hang, then crash with shell snapshot timeout

Note: Setting "claudeCode.useTerminal": true makes it work fine (workaround

Claude Model

Sonnet (default)

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

2.0.75

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

VS Code integrated terminal

Additional Information

_No response_