[BUG] Unable to push Commits: local HTTP proxy for git authentication error

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 Claude Code in Desktop.
When I try to push my commits I get the below error. It went on a loop pushing commits and consumed all my usage limits along with some extra usage that I have enabled.
the local HTTP proxy at 127.0.0.1:37330 isn't running, /debug confirmed the proxy process failure, and that restarts haven't resolved it.
What's happening: The environment uses a local HTTP proxy (local_proxy@127.0.0.1) for git authentication. This proxy process is not running or not listening on its assigned port, so git cannot authenticate to push.
Already tested -

• Removing HTTPS and Global Proxy
• Git installed correctly
• Ports are available
• Logging out and logging back in completely
• Deleting VM module

What Should Happen?

Be able to use claude code in desktop without errors when pushing commits.
Recover the lost usage

Error Messages/Logs

Exit code 128
fatal: could not read Password for 'http://local_proxy@127.0.0.1:58953': No such device or address

Steps to Reproduce

1. Try again to push the commits from branch to create PR
2. Error pops up

Claude Model

Opus

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

1.1.3830

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

VS Code integrated terminal

Additional Information

_No response_