[BUG] No Response from Claude in VS Code in versions newer than 2.1.20

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?

Whenever I run any version of claude code newer than 2.1.20 in VS Code on Mac, and when i do claude keeps "thinking" but never responds. Also, the stop button does not work. Did some typical troubleshooting steps (reload VS Code, reinstall claude plugin, etc), plus some debugging with webview developer tools with claude and it didn't help...

What Should Happen?

Claude should respond, duh!

Error Messages/Logs

Steps to Reproduce

Just opening VS Code in a window I am working and saying Hi to claude via the plugin causes it to stall.

Claude Model

Opus

Is this a regression?

Yes, this worked in a previous version

Last Working Version

2.1.20

Claude Code Version

2.1.37

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

Other

Additional Information

VS Code Version:
Version: 1.108.2 (Universal)
Commit: c9d77990917f3102ada88be140d28b038d1dd7c7
Date: 2026-01-21T13:52:09.270Z
Electron: 39.2.7
ElectronBuildId: 12953945
Chromium: 142.0.7444.235
Node.js: 22.21.1
V8: 14.2.231.21-electron.0
OS: Darwin arm64 24.6.0