VS Code extension does not work with Remote-SSH (always uses local Windows paths)

Description

The Claude Code VS Code extension does not work properly when connected to a remote Linux server via Remote-SSH. The extension always tries to use local Windows paths instead of the remote server paths.

Environment

• Local OS: Windows 11
• Remote OS: Linux (Ubuntu)
• VS Code: Latest version with Remote-SSH extension
• Claude Code Extension: 2.1.17
• Claude Code CLI on remote server: 2.1.17 (installed at ~/.local/bin/claude)

Problem

When connected to a Linux server via Remote-SSH, the extension:

1. Tries to spawn the Windows binary (claude.exe) instead of the Linux binary
2. Uses Windows paths like \root and C:\Users\<user>\.claude\projects\-root
3. Fails with error: Claude Code native binary not found at claude

Error Logs

[info] Spawning Claude with SDK query function - cwd: \root, permission mode: default, version: 2.1.17, claude, resume: undefined
[error] Failed to load config cache: ReferenceError: Claude Code native binary not found at claude. Please ensure Claude Code is installed via native installer or specify a valid path with options.pathToClaudeCodeExecutable.
[warning] Failed to load sessions from \root: Error: ENOENT: no such file or directory, scandir 'C:\Users\conta\.claude\projects\-root'

Steps to Reproduce

1. Install VS Code with Remote-SSH extension on Windows
2. Install Claude Code extension
3. Connect to a Linux server via SSH
4. Install Claude Code CLI on the Linux server (curl -fsSL https://claude.ai/install.sh | sh)
5. Open Claude Code panel in VS Code
6. Extension fails to connect - uses Windows paths instead of Linux paths

Attempted Workarounds

• Installed extension on both LOCAL and SSH remote
• Tried setting claudeCode.claudeProcessWrapper to /root/.local/bin/claude
• Tried setting claudeCode.pathToClaudeCodeExecutable to /root/.local/bin/claude
• Created directory C:\Users\<user>\.claude\projects\-root on Windows

None of these workarounds resolved the issue.

Expected Behavior

When connected via Remote-SSH, the extension should:

1. Detect that it's in a remote environment
2. Use the Claude CLI installed on the remote server
3. Use Linux paths for the remote server (e.g., /root/.claude/projects/root)

Current Workaround

Using Claude Code CLI directly in the terminal on the remote server works perfectly. Only the VS Code extension integration is broken.