[BUG] VS Code extension hangs when loading old conversations

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?

New conversations work fine
Loading conversations with a long conversation history causes infinite hang with a "Loading History" message or "vibing...incubating..." messages when launching a new conversation.
No error in Output panel, just hangs indefinitely
Bug is intermittent. I've loaded the conversations several times over the past few weeks. Today was the first time i experienced the hang issue.

What Should Happen?

UI shouldn't hang. display a descriptive message, handle the history load, etc.

Error Messages/Logs

Steps to Reproduce

1. create a Claude Code dialog with a long history. in this case, the history was many, many days old and had been compacted many, many time.
2. close the claude extension and vs code.
3. relaunch vs code, start claude code extension.
4. select the "long" conversation from conversation history.
5. claude code UX will display the "Loading" message; if you attempt to start a new conversation, claude code will display the "discombobulating" message cycle but won't ever respond.

Claude Model

Sonnet (default)

Is this a regression?

I don't know

Last Working Version

_No response_

Claude Code Version

NA. I' running the extension version 2.0.75

Platform

Other

Operating System

Windows

Terminal/Shell

VS Code integrated terminal

Additional Information

_No response_