VS Code Extension hangs on 'Discombobulating...' after v2.1.19

Description

VS Code Extension stops responding after version 2.1.19. The extension shows 'Discombobulating...' indefinitely and never completes any operation.

Steps to Reproduce

1. Install Claude Code VS Code extension (any version after 2.1.19)
2. Try to use the extension (login, send message, etc.)
3. Extension shows 'Discombobulating...' and hangs indefinitely

Expected Behavior

Extension should respond and complete operations normally.

Actual Behavior

Extension hangs on 'Discombobulating...' message and never responds.

Workaround

Downgrading to v2.1.19 resolves the issue:

code --uninstall-extension anthropic.claude-code
code --install-extension anthropic.claude-code@2.1.19

Environment

• OS: macOS (Darwin 25.2.0)
• VS Code: Latest
• Extension version: >2.1.19 (broken), 2.1.19 (works)
• CLI works fine in terminal