[BUG] VS Code Extension: OTEL_LOG_USER_PROMPTS=1 does not log prompt content (works in CLI)

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?

[BUG] VS Code Extension: OTEL_LOG_USER_PROMPTS=1 does not log prompt content (works in CLI)

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?

When using the Claude Code VS Code extension with OpenTelemetry configured and OTEL_LOG_USER_PROMPTS=1 set, user prompt content is not included in claude_code.user_prompt log events. Only prompt_length is recorded (the default redacted behavior).

The same configuration works correctly when running Claude Code via the CLI — prompt content is included in the exported events as expected.

Important: This is not an environment variable propagation issue. Other OTEL functionality works correctly in the VS Code extension — metrics, claude_code.tool_result events, and claude_code.api_call events are all exported successfully. The issue is specifically that OTEL_LOG_USER_PROMPTS=1 is not being respected for prompt content logging.

Expected Behavior

claude_code.user_prompt events should include the prompt attribute containing the full prompt text when OTEL_LOG_USER_PROMPTS=1 is set, consistent with CLI behavior.

Actual Behavior

claude_code.user_prompt events are emitted but the prompt attribute is either missing or redacted. Only prompt_length is present. All other OTEL telemetry (metrics, tool results, API calls) exports correctly.

Environment

• Platform: Anthropic API
• Claude Code version: 2.1.39
• VS Code version: (running in devcontainer — check Help > About in VS Code)
• Operating System: Linux 6.6.87.2-microsoft-standard-WSL2 (devcontainer on Windows WSL2)
• OTEL backend: SigNoz

Configuration

Environment variables set via devcontainer remoteEnv (confirmed working for all other OTEL functionality). (This is not the complete set of environment variables I have configured; only the most relevant.)

{
  "CLAUDE_CODE_ENABLE_TELEMETRY": "1",
  "OTEL_EXPORTER_OTLP_PROTOCOL": "grpc",
  "OTEL_METRICS_EXPORTER": "otlp",
  "OTEL_LOGS_EXPORTER": "otlp",
  "OTEL_LOG_USER_PROMPTS": "1",
}

Additional Context

• Other telemetry data (metrics, tool results, API calls) exports correctly from the VS Code extension, confirming that environment variables are being passed through successfully.
• The devcontainer uses the anthropic.claude-code VS Code extension.
• This may be related to #10972 (VS Code extension omitting certain telemetry attributes that the CLI includes), suggesting the extension's telemetry instrumentation has divergent code paths from the CLI.

What Should Happen?

claude_code.user_prompt events should include the prompt attribute containing the full prompt text when OTEL_LOG_USER_PROMPTS=1 is set, consistent with CLI behavior.

Error Messages/Logs

Steps to Reproduce

Environment variables set via devcontainer remoteEnv (confirmed working for all other OTEL functionality). (This is not the complete set of environment variables I have configured; only the most relevant.)

{
"CLAUDE_CODE_ENABLE_TELEMETRY": "1",
"OTEL_EXPORTER_OTLP_PROTOCOL": "grpc",
"OTEL_METRICS_EXPORTER": "otlp",
"OTEL_LOGS_EXPORTER": "otlp",
"OTEL_LOG_USER_PROMPTS": "1",
}

Claude Model

Not sure / Multiple models

Is this a regression?

No, this never worked

Last Working Version

_No response_

Claude Code Version

2.1.39

Platform

Anthropic API

Operating System

Ubuntu/Debian Linux

Terminal/Shell

WSL (Windows Subsystem for Linux)

Additional Information

_No response_