[BUG] VSCode Extension 2.1.19 - Authentication fails with "wrong API key" after Anthropic Console login (works in 2.1.16)

Bug Description

The VSCode extension version 2.1.19 has a regression bug where authentication fails after signing in with Anthropic Console account and authorizing new API key creation. The extension repeatedly says the API key is wrong and suggests running /login again, creating an infinite loop.

Version Information

• Affected version: 2.1.19
• Working version: 2.1.16
• Platform: VSCode Extension

Expected Behavior

After signing in with Anthropic Console account and authorizing API key creation, the extension should successfully authenticate and be ready to use.

Actual Behavior

After completing the login flow:

1. Sign in with Anthropic Console account
2. Authorize new API key creation
3. Extension says the API key is wrong
4. Extension suggests running /login again
5. Loop continues indefinitely

Important Notes

• CLI authentication works perfectly with the same credentials - this is VSCode extension-specific
• This is a regression - version 2.1.16 works fine
• Time wasted: 1-2 hours debugging before discovering the downgrade workaround

Workaround

Downgrade to version 2.1.16 of the VSCode extension.

Impact

This is a blocking issue for authentication that affects new users trying to set up the extension. The discrepancy between CLI and extension behavior suggests an extension-specific issue in the auth flow introduced between 2.1.16 and 2.1.19.