claudeCode.useCtrlEnter setting has no effect in VS Code extension

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?

Actual behavior:
Enter still submits the prompt regardless of the setting.

What Should Happen?

Expected behavior:
When claudeCode.useCtrlEnter is set to true, pressing Enter should create a newline and Cmd+Enter should submit the prompt.

Error Messages/Logs

Steps to Reproduce

1. Open VS Code Settings (JSON)
2. Add "claudeCode.useCtrlEnter": true
3. Reload VS Code window
4. Open Claude Code panel
5. Type text and press Enter
6. Message is sent instead of creating a newline

Troubleshooting attempted:

• Verified setting is in user settings JSON
• Reloaded VS Code window
• Checked for conflicting keybindings (none found)
• Ran /terminal-setup (only affects Shift+Enter, not the core issue)

Claude Model

Opus

Is this a regression?

I don't know

Last Working Version

_No response_

Claude Code Version

2.0.76

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

VS Code integrated terminal

Additional Information

_No response_