[BUG] Native installer (claude.exe) freezes indefinitely in VS Code terminal on Windows

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?

After switching from the npm install to the native installer (prompted by Claude Code itself with the message: "Claude Code has switched from npm to native installer. Run claude install or see https://docs.anthropic.com/en/docs/claude-code/getting-started for more options."), Claude Code freezes indefinitely on startup only in VS Code's integrated terminal. The CLI becomes completely unresponsive — no prompt appears and no keyboard input is accepted.
The same version works perfectly fine in a standalone terminal (PowerShell, Command Prompt, Windows Terminal).
Switching back to the npm install (npm install -g @anthropic-ai/claude-code) immediately resolves the issue — Claude Code loads and works normally in VS Code's terminal.

What Should Happen?

Expected Behavior
Claude Code should load and be fully interactive in VS Code's integrated terminal, regardless of install method.
Actual Behavior

Native installer (claude.exe in .local\bin): Freezes indefinitely in VS Code terminal. Shows startup banner but never becomes interactive. Keyboard input is not registered.
Interesting clue: pasting text into the terminal and deleting it would temporarily "wake up" input, suggesting a terminal input handling issue.
npm install (AppData\Roaming\npm\claude): Works perfectly in the same VS Code terminal with identical settings.

Workaround

Rename or delete the native binary: ren C:\Users\<user>\.local\bin\claude.exe claude.exe.bak
Install via npm: npm install -g @anthropic-ai/claude-code
Verify: where.exe claude should point to the npm path

Troubleshooting Already Attempted
The following did not fix the issue (confirming it's specific to the native installer):

Disabling VS Code shell integration
Disabling terminal suggestions/IntelliSense
Disabling terminal decorations, sticky scroll, quick fix
Switching VS Code default terminal from PowerShell to Command Prompt
Disabling inheritEnv and windowsEnableConpty
Removing hooks (~/.claude/hooks/)
Clearing conversation history
No MCP servers configured
Testing in a clean project folder

Error Messages/Logs

Steps to Reproduce

Have Claude Code working via npm install in VS Code terminal (confirmed working)
Follow the prompt to switch to the native installer (claude install or manual download)
Confirm where.exe claude points to C:\Users\<user>\.local\bin\claude.exe
Open VS Code and launch claude in the integrated terminal
Observe: Claude Code hangs indefinitely — no prompt, no input accepted

Claude Model

Opus

Is this a regression?

I don't know

Last Working Version

_No response_

Claude Code Version

2.1.37

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

PowerShell

Additional Information

Additional Context
The SessionStart:startup hook error message appears on launch in the standalone terminal (where it still works), which may be a related but separate issue. The freeze in VS Code occurs regardless of whether hooks are configured.
The native installer binary likely handles terminal I/O differently than the Node.js-based npm version, and whatever method it uses is incompatible with VS Code's pseudo-terminal (ConPTY) layer on Windows.