[BUG] Z index of claude-code vscode extension blocks my hover tooltips

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?

<img width="746" height="324" alt="Image" src="https://github.com/user-attachments/assets/858c93c1-99ec-4f34-bdbd-d98e02cb8ad5" />

For the claude code vs code extension, when I use the default UI (not the terminal version) then the zindex causes my tooltips to be cut off and covered as shown in the screenshot.

What Should Happen?

The tooltips should be on top and readable when I hover over my code. Terminal version works correctly

Error Messages/Logs

Steps to Reproduce

Open a file such as config_loader.py.

Engage the claude code extension with cmd+esc.

Hover over some code.

Notice the tooltip is hidden

Claude Model

None

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

2.1.45 (Claude Code)

Platform

AWS Bedrock

Operating System

macOS

Terminal/Shell

VS Code integrated terminal

Additional Information

Please direct me to the vscode extension repository or elsewhere if this is the wrong place for this issue. Thanks!