Claude Code VS Code extension fails to detect CLAUDE_CODE_GIT_BASH_PATH 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?

Claude Code works perfectly in the terminal but fails in VS Code with the error:
> "Claude Code on Windows requires git-bash. If installed but not in PATH, set environment variable pointing to your bash.exe"

This occurs despite the environment variable being correctly configured.

What Should Happen?

## Environment

• Windows Version: Windows 10 22H2 (Build 19045)
• Claude Code Extension Version: 2.0.75
• Git Version: 2.52.0.windows.1
• Bash Version: GNU bash 5.2.37
• Git Bash Location: C:\Program Files\Git\bin\bash.exe (verified exists)

Error Messages/Logs

## Environment
  - **Windows Version:** Windows 10 22H2 (Build 19045)
  - **Claude Code Extension Version:** 2.0.75
  - **Git Version:** 2.52.0.windows.1
  - **Bash Version:** GNU bash 5.2.37
  - **Git Bash Location:** `C:\Program Files\Git\bin\bash.exe` (verified exists)

  ## Configuration Verified
  1. **Windows User Environment Variable** is set:
     - `CLAUDE_CODE_GIT_BASH_PATH` = `C:\Program Files\Git\bin\bash.exe`
     - Verified via `[System.Environment]::GetEnvironmentVariable('CLAUDE_CODE_GIT_BASH_PATH', 'User')`

  2. **VS Code settings.json** includes:
  "claudeCode.environmentVariables": [
      {
          "name": "CLAUDE_CODE_GIT_BASH_PATH",
          "value": "C:\\Program Files\\Git\\bin\\bash.exe"
      }
  ],
  "terminal.integrated.env.windows": {
      "CLAUDE_CODE_GIT_BASH_PATH": "C:\\Program Files\\Git\\bin\\bash.exe"
  }

  3. **~/.claude/settings.json** includes:
  {
    "env": {
      "CLAUDE_CODE_GIT_BASH_PATH": "C:\\Program Files\\Git\\bin\\bash.exe"
    }
  }

Steps to Reproduce

1. Install Claude Code extension in VS Code on Windows
2. Set CLAUDE_CODE_GIT_BASH_PATH environment variable (user level)
3. Configure VS Code settings as shown above
4. Restart VS Code completely
5. Try to use Claude Code in VS Code panel

Claude Model

Opus

Is this a regression?

Yes, this worked in a previous version

Last Working Version

2.0.75

Claude Code Version

2.0.76 (Claude Code)

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

VS Code integrated terminal

Additional Information

Error: Claude Code on Windows requires git-bash (https://git-scm.com/downloads/win). If installed but not in PATH, set environment variable pointing to your bash.exe, similar to: CLAUDE_CODE_GIT_BASH_PATH=C:\Program Files\Git\bin\bash.exe
View output logs · Troubleshooting resources