[BUG] VSCode extension failing to connect on MCP servers.

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?

On Windows when using VSCode extension and running MCP servers, the extension does not recognize the tools even though a claude instance run in terminal does.

What Should Happen?

The MCP server should be available in both.

Error Messages/Logs

Steps to Reproduce

1. Add Atlassian Rovo MCP server mcp to Claude
2. Open a terminal and check MCP status is authenticated and logged in
3. Attempt to use in extension window.

Claude Model

Opus

Is this a regression?

Yes, this worked in a previous version

Last Working Version

2.1.19

Claude Code Version

2.1.22

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

PowerShell

Additional Information

_No response_