[BUG]: Authentication loop: Grey screen, 403 error, and claude command not found

Describe the bug
After installing the Claude Code extension, I am stuck in an authentication loop. The extension sidebar shows a grey screen. When I try to log in using the "Claude.ai Subscription" button, it leads back to the same grey screen. The chat interface shows a API Error: 403 {"error":{"type":"forbidden","message":"Request not allowed"}} and suggests running /login. However, running /login in the chat also results in the same grey screen.

Furthermore, the claude command is not available in the VS Code terminal. It returns a CommandNotFoundException. The Claude: Install 'claude' Command is also missing from the Command Palette (Ctrl+Shift+P).

To Reproduce

1. Install the Claude Code extension on a Windows machine.
2. Open the Claude sidebar.
3. Click on "Claude.ai Subscription" to log in.
4. The process fails and returns to a grey screen.
5. The chat shows a 403 Forbidden error.
6. Running /login in the chat does not work.
7. Running claude in the terminal fails with "command not found".

Expected behavior
The login process should complete successfully, either by opening a browser window for authentication or by providing a login link in the terminal. The claude command should be installed and accessible.

Screenshots
Initial Login Screen:

Terminal Error:

Command Palette Error:

Troubleshooting Steps Taken
I have already tried the following steps without success:

• Reinstalling the extension multiple times.
• Completely restarting VS Code after each step.
• Disabling all other extensions to check for conflicts.
• Running VS Code as an administrator.
• Manually clearing the extension cache by deleting the anthropic.claude-code folder from %USERPROFILE%\.vscode\extensions and clearing VS Code's cache folders (CachedData, CachedExtensionVSIXs) before reinstalling.
• The Claude: Install 'claude' Command is not available in the command palette, so I cannot run it.

Desktop (please complete the following information):

• OS: Windows
• VS Code Version: [<-- 1.108.1]

Additional context
The issue seems to be a "ghost state" where the extension is partially active (able to make an API call and get a 403 error) but not fully installed (the claude CLI command is not registered, and login commands don't function).