[BUG] In the VSCode extension all the conversation is lost that happened before context

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?

I am using VS Code extension and whenever compact happens AND if I restart the terminal (like after restarting the app or opening the same conversation but from a new terminal), all the conversation is lost. Nothing is visible before the compaction and it has led to huge wastage of tokens and ideas I had discussed with CC. It is a shame that when Claude creates plans, it doesn't write them anywhere. If there is a way for me to access my past conversations anywhere on the web, I would love to know

What Should Happen?

Claude should preserve conversation history.

Error Messages/Logs

Steps to Reproduce

1. Just paste lots of text
2. Then do /compact
3. Then close the window
4. Open the window
5. Load the convo and nothing is visible anymore

Claude Model

Opus

Is this a regression?

I don't know

Last Working Version

_No response_

Claude Code Version

2.1.39

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

VS Code integrated terminal

Additional Information

_No response_