[BUG] New clickable OSC8 file:/// hyperlinks do not work in VSCode

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 emits OSC 8 escape sequences for clickable file path hyperlinks (added in v2.1.x). These links render correctly (underlined, hoverable) in VSCode's integrated terminal, but clicking them does nothing.

Key observation: Plain file:// URLs printed as text (e.g., echo file:///workspace/foo.txt) work correctly with Cmd/Ctrl+Click in the same terminal. Only OSC 8 escape sequence links fail.

This is a known VSCode issue - https://github.com/microsoft/vscode/issues/242371

What Should Happen?

Probably - recognize Claude is running in VSCode, and as long as https://github.com/microsoft/vscode/issues/242371 is not fixed, not use OSC 8 file:// URLs (just use full path instead maybe with no clickable links), or provide another method to turn off OSC 8 file:// links.

Error Messages/Logs

An error occurred opening an external program.

No application found to open URL

error message pops up

Steps to Reproduce

1. Open a project in VSCode
2. Run Claude Code in the integrated terminal
3. Perform an action that causes Claude to output file paths (e.g., read or edit a file)
4. Observe: file paths are rendered as clickable links (underlined)
5. Cmd/Ctrl+Click on the link

Claude Model

Opus

Is this a regression?

Yes, this worked in a previous version

Last Working Version

2.0.x

Claude Code Version

2.1.11

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

VS Code integrated terminal

Additional Information

Comparison test

``` bash

This works - opens the file:

echo "file:///workspace/src/main.py"

Cmd+Click opens the file ✓

Claude Code's OSC 8 output does NOT work:

printf '\e]8;;file:///workspace/src/main.py\e\\main.py\e]8;;\e\\\n'

Cmd+Click does nothing ✗