[BUG] VS Code Extension Terminal and UI Unusable

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 I open Claude Code Terminal, the whole interface glitches and unable to proceed, so I used the UI version. It has been working well until a recent update crashes Bun and has an Error exit code 3. During the debugging process it keeps asking me to login, I log in via API but after login the chat interface suggests that I am not logged in and recommends /login. Whenever I login again and type something it will log me out despite countless OAuth processes.

What Should Happen?

It should function normally as designed and not ask users to log in countless of times

Error Messages/Logs

2026-02-23 15:41:44.615 [info] From claude: 2026-02-23T07:41:44.616Z [ERROR] "Error: Error: Could not resolve authentication method. Expected either apiKey or authToken to be set. Or for one of the \"X-Api-Key\" or \"Authorization\" headers to be explicitly omitted\n    at validateHeaders (B:/~BUN/root/claude.exe:355:1013)\n    at buildHeaders (B:/~BUN/root/claude.exe:355:8580)\n    at async buildRequest (B:/~BUN/root/claude.exe:355:7646)\n    at async makeRequest (B:/~BUN/root/claude.exe:355:3411)\n    at processTicksAndRejections (native:7:39)"

2026-02-23 15:41:44.616 [info] From claude: 2026-02-23T07:41:44.616Z [DEBUG] countTokensWithFallback: haiku fallback failed: Could not resolve authentication method. Expected either apiKey or authToken to be set. Or for one of the "X-Api-Key" or "Authorization" headers to be explicitly omitted
2026-02-23T07:41:44.616Z [ERROR] "Error: Error: Could not resolve authentication method. Expected either apiKey or authToken to be set. Or for one of the \"X-Api-Key\" or \"Authorization\" headers to be explicitly omitted\n    at validateHeaders (B:/~BUN/root/claude.exe:355:1013)\n    at buildHeaders (B:/~BUN/root/claude.exe:355:8580)\n    at async buildRequest (B:/~BUN/root/claude.exe:355:7646)\n    at async makeRequest (B:/~BUN/root/claude.exe:355:3411)\n    at processTicksAndRejections (native:7:39)"
2026-02-23T07:41:44.616Z [DEBUG] countToolDefinitionTokens returned null for 17 tools: Task, TaskOutput, Bash, Glob, Grep, ExitPlanMode, Read, Edit, Write, NotebookEdit, WebFetch, TodoWri...

2026-02-23 15:41:44.616 [info] From claude: 2026-02-23T07:41:44.617Z [DEBUG] Ripgrep first use test: PASSED (mode=builtin, path=C:\Users\JayenFeng\.vscode\extensions\anthropic.claude-code-2.1.47-win32-arm64\resources\native-binary\claude.exe)

2026-02-23 15:41:45.202 [info] From claude: 2026-02-23T07:41:45.202Z [DEBUG] Successfully refreshed marketplace: claude-plugins-official
2026-02-23T07:41:45.202Z [DEBUG] Plugin autoupdate: checking installed plugins

2026-02-23 15:41:45.224 [info] From claude: 2026-02-23T07:41:45.224Z [DEBUG] Successfully refreshed marketplace: claude-plugins-official
2026-02-23T07:41:45.224Z [DEBUG] Plugin autoupdate: checking installed plugins

2026-02-23 15:41:50.972 [info] Received message from webview: {"type":"request","requestId":"wb0l7c8m66c","request":{"type":"open_url","url":"https://code.claude.com/docs/en/vs-code#using-third-party-providers"}}
2026-02-23 15:43:01.837 [info] Received message from webview: {"type":"request","requestId":"jqnlur8ic4q","request":{"type":"open_claude_in_terminal"}}
2026-02-23 15:43:01.839 [info] Creating new Claude terminal
2026-02-23 15:43:05.660 [info] From claude: ============================================================
Bun v1.3.10 (1423d3c8) Windows arm64
Windows v.win11_dt
CPU: neon fp aes crc32 atomics
Args: "c:\Users\JayenFeng\.vscode\extensions\anthropic.claude-code-2.1.47-win32-arm64\resources\native-binary\claude.exe" "--output-format" "stream-json" "--verbose" "--input-format" "stream-json" "--max-thinking-tokens" "31"...
Features: Bun.stderr(2) Bun.stdin(2) Bun.stdout(2) fetch(4) jsc spawn(10) standalone_executable process_dlopen 
Builtins: "bun:main" "node:assert" "node:async_hooks" "node:buffer" "node:child_process" "node:constants" "node:crypto" "node:events" "node:fs" "node:fs/promises" "node:http" "node:https" "node:module" "node:net" "node:os" "node:path" "node:path/posix" "node:path/win32" "node:perf_hooks" "node:process" "node:stream" "node:timers/promises" "node:tls" "node:tty" "node:url" "node:util" "node:zlib" "node:worker_threads" "undici" "ws" "node:http2" 
2026-02-23 15:43:05.661 [info] From claude: 

2026-02-23 15:43:05.666 [info] From claude: Elapsed: 81968ms | User: 828ms | Sys: 343ms
RSS: 0.44GB | Peak: 0.53GB | Commit: 0.64GB | Faults: 148213 | Machine: 16.76GB

panic(thread 26220): incorrect alignment
oh no: Bun has crashed. This indicates a bug in Bun, not your code.

To send a redacted crash report to Bun's team,
please file a GitHub issue using the link below:

 https://bun.report/1.3.10/W_11423d3cmgEugogCwmzrfwl0uiBgyvBw32CwmvBo7xB44wCwvhgmCw236lC4i16lCg6xjkBgsjufCYKERNEL32.DLLg0jCCSntdll.dllomi1BA0eNrLzEvOLypKTS5RSMzJTM/LTc0rAQBMcwep


2026-02-23 15:43:05.739 [info] Closing Claude on channel: kvl0rxdxp0s
2026-02-23 15:43:05.740 [error] Error from Claude (on channel kvl0rxdxp0s): Error: Claude Code process exited with code 3

Steps to Reproduce

It is basically the most basic log in attempt and launching attempt that is failing right now.

Claude Model

Opus

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

2.1.50 (Claude Code)

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

VS Code integrated terminal

Additional Information

<img width="457" height="774" alt="Image" src="https://github.com/user-attachments/assets/d48b845c-78bc-40c4-8553-6fb1898f4429" />

<img width="403" height="310" alt="Image" src="https://github.com/user-attachments/assets/3aa2e55e-dba5-43dd-8cc6-b4e2afd00dd7" />