[BUG] very frustrating CC VS code extension issue.

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?

When launch the latest claude code extension in vs code and /login through api console with auth code-build something great- it replies API key invalid or redirects me to the login page.

i have a claude dev account with funds in it, the api keys are being created by claude.

What Should Happen?

I should login and start to chat with claude, it even creates the api keys after i give it permission, the extension is just not working.

Error Messages/Logs

Steps to Reproduce

1. Open VS code
2. Open Folder
3. Open Extensions tab and download claude code extension
4. open a new claude tab once its downloaded
5. send /login into the chat
6. choose "Anthropic Console"
7. Complete auth
8. type in the chat

After the Auth, my chat messages are either met with the same login page, or a message saying the api key is invalid.

Claude Model

None

Is this a regression?

No, this never worked

Last Working Version

_No response_

Claude Code Version

2.1.11

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

Other

Additional Information

I tried deleting the extension, trying previous versions to even 5 months back. nothings working. the extension is not working.