[BUG] VS Code Extension fails to launch Claude Code on Windows 11 despite git-bash properly installed and in PATH

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?

Claude Code extension fails to spawn with git-bash error even though bash is installed and accessible.
Environment:

OS: Windows 11
VS Code: [insert your version - you can find this in Help > About]
Claude Code Extension: [latest from Marketplace]
Git: version 2.52.0.windows.1
Bash: GNU bash, version 5.2.37(1)-release

Steps to Reproduce:

Install Claude Code extension from Marketplace
Click Spark icon to open Claude Code panel
Error appears immediately

Error Message:
Error: Claude Code on Windows requires git-bash (https://git-scm.com/downloads/win). If installed but not in PATH, set environment variable pointing to your bash.exe, similar to: CLAUDE_CODE_GIT_BASH_PATH=C:\Program Files\Git\bin\bash.exe
Troubleshooting Completed:

✅ Git and bash verified installed at C:\Program Files\Git\bin\bash.exe
✅ Tested bash works: & "C:\Program Files\Git\bin\bash.exe" --version returns bash 5.2.37
✅ Added C:\Program Files\Git\bin to System PATH (capital PATH)
✅ Verified PATH update with where bash (returns correct path)
✅ Restarted computer multiple times
✅ Set CLAUDE_CODE_GIT_BASH_PATH environment variable in VS Code settings
✅ Restarted VS Code multiple times
✅ Confirmed OAuth tokens present in secure storage

Actual Behavior:
Extension fails to spawn Claude process with git-bash PATH error despite all PATH configuration being correct and verified

What Should Happen?

Claude Code should launch and be usable in VS Code panel

Error Messages/Logs

Error Logs:
2026-02-16 11:26:28.535 [info] Claude code extension is now active?
2026-02-16 11:26:28.535 [info] MCP Server running on port 59111 (localhost only)
2026-02-16 11:26:28.535 [info] AuthManager initialized
2026-02-16 11:26:28.826 [info] Received message from webview: {"type":"request","requestId":"wy6ayyasrup","request":{"type":"init"}}
2026-02-16 11:26:28.832 [info] Getting authentication status
2026-02-16 11:26:28.832 [info] OAuth tokens found in secure storage
2026-02-16 11:26:29.094 [info] Getting authentication status
2026-02-16 11:26:29.094 [info] OAuth tokens found in secure storage
2026-02-16 11:26:29.108 [info] Received message from webview: {"type":"request","requestId":"sb3wlcuko7a","request":{"type":"rename_tab","title":"Claude Code","hasPendingPermissions":false,"hasUnseenCompletion":false}}
2026-02-16 11:26:29.109 [info] Received message from webview: {"type":"request","requestId":"sprfnzho39g","request":{"type":"get_claude_state"}}
2026-02-16 11:26:29.176 [info] Loading config cache by launching Claude...
2026-02-16 11:26:29.177 [error] Failed to load config cache: Error: Claude Code on Windows requires git-bash (https://git-scm.com/downloads/win). If installed but not in PATH, set environment variable pointing to your bash.exe, similar to: CLAUDE_CODE_GIT_BASH_PATH=C:\Program Files\Git\bin\bash.exe
2026-02-16 11:26:29.177 [error] Error processing client request: Error: Claude Code on Windows requires git-bash (https://git-scm.com/downloads/win). If installed but not in PATH, set environment variable pointing to your bash.exe, similar to: CLAUDE_CODE_GIT_BASH_PATH=C:\Program Files\Git\bin\bash.exe
2026-02-16 11:26:29.177 [info] Received message from webview: {"type":"request","requestId":"rd6j0uqsgvq","request":{"type":"get_current_selection"}}
2026-02-16 11:26:29.177 [info] Received message from webview: {"type":"request","requestId":"5t4ibcuzltl","request":{"type":"get_asset_uris"}}
2026-02-16 11:26:29.178 [info] Received message from webview: {"type":"request","requestId":"y8mgzbi2fwr","request":{"type":"list_sessions_request"}}
2026-02-16 11:26:29.178 [warning] Failed to load sessions from c:\Users\dstephens\Desktop\Github\track-core: Error: ENOENT: no such file or directory, scandir 'C:\Users\dstephens\.claude\projects\c--Users-dstephens-Desktop-Github-track-core'
2026-02-16 11:26:29.178 [info] Received message from webview: {"type":"request","requestId":"ap71622qjdq","request":{"type":"rename_tab","title":"Claude Code","hasPendingPermissions":false,"hasUnseenCompletion":false}}
2026-02-16 11:26:29.263 [info] Received message from webview: {"type":"request","requestId":"mbaimd7umk","request":{"type":"rename_tab","title":"Claude Code","hasPendingPermissions":false,"hasUnseenCompletion":false}}
2026-02-16 11:26:29.263 [info] Received message from webview: {"type":"launch_claude","channelId":"ybb5bff9zk","cwd":"c:\\Users\\dstephens\\Desktop\\Github\\track-core","model":"default","permissionMode":"default","thinkingLevel":"default_on"}
2026-02-16 11:26:29.307 [info] Launching Claude on channel: ybb5bff9zk
2026-02-16 11:26:29.307 [info] Closing Claude on channel: ybb5bff9zk
2026-02-16 11:26:29.308 [error] Error spawning Claude (on channel ybb5bff9zk): Error: Claude Code on Windows requires git-bash (https://git-scm.com/downloads/win). If installed but not in PATH, set environment variable pointing to your bash.exe, similar to: CLAUDE_CODE_GIT_BASH_PATH=C:\Program Files\Git\bin\bash.exe
2026-02-16 11:26:29.324 [info] Received message from webview: {"type":"interrupt_claude","channelId":"sprfnzho39g"}
2026-02-16 11:26:29.324 [warning] Channel not found: sprfnzho39g
2026-02-16 11:27:01.820 [info] Received message from webview: {"type":"request","requestId":"aot6bgu7ymw","request":{"type":"dismiss_terminal_banner"}}

Steps to Reproduce

1. Install Claude Code extension from VS Code Marketplace
2. Open VS Code
3. Click the Spark icon in the left sidebar to open Claude Code panel
4. Attempt to send any prompt to Claude Code
5. Error appears immediately in the output panel

Expected Result:
Claude Code should launch and accept the prompt

Actual Result:
Extension fails with git-bash error and Claude process never spawns

Claude Model

Opus

Is this a regression?

No, this never worked

Last Working Version

_No response_

Claude Code Version

2.1.42

Platform

Other

Operating System

Windows

Terminal/Shell

VS Code integrated terminal

Additional Information

_No response_