[BUG] Claude Code VSCode extension enters a loop after restarting the extension

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?

Issue: Claude Code VSCode extension enters a loop after restarting the extension
Environment: VSCode extension (not terminal)
Reproduction: Restart the Claude Code extension mid-conversation
Expected: Should recover gracefully or start a fresh session

What Should Happen?

Issue: Claude Code VSCode extension enters a loop after restarting the extension
Environment: VSCode extension (not terminal)
Reproduction: Restart the Claude Code extension mid-conversation
Expected: Should recover gracefully or start a fresh session

Error Messages/Logs

Issue: Claude Code VSCode extension enters a loop after restarting the extension
Environment: VSCode extension (not terminal)
Reproduction: Restart the Claude Code extension mid-conversation
Expected: Should recover gracefully or start a fresh session

Steps to Reproduce

restart extension and try to ask anything to the extension.

Claude Model

Not sure / Multiple models

Is this a regression?

No, this never worked

Last Working Version

_No response_

Claude Code Version

vs code extension

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

VS Code integrated terminal

Additional Information

_No response_