[BUG] Claude doesn't let you answer "Do you trust the files in this folder?"

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?

In VS Code under WIndows, I have to use the terminal mode because "regular" mode is currently broken (fails with error 3221225477), apparently a known issue.

Upon launching Claude with the asterisk button, the terminal opens and asks the trust question. But you're never given the opportunity to enter "1" as presented. The terminal immediately bails out to the shell.

Screen shot attached.
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<img width="752" height="419" alt="Image" src="https://github.com/user-attachments/assets/645451d0-df61-4fb7-b209-226daf0554e2" />

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What Should Happen?

You should be able to confirm (persistently would be ideal) and proceed with Claude.

Error Messages/Logs

Steps to Reproduce

Install the Claude plug-in in VS Code, under Windows.
Ensure that Claude can run at a regular Windows command prompt.
In VS, set it to run in a terminal instead of its UI, under Settings: "claudeCode.useTerminal": true
Invoke it with the asterisk button.

Claude Model

None

Is this a regression?

I don't know

Last Working Version

_No response_

Claude Code Version

2.1.7 (Claude Code)

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

VS Code integrated terminal

Additional Information

With the "regular" Claude UI currently broken in VS Code, and the terminal not working... Claude is unusable in the IDE. Not a good look.