[BUG] VS Code extension ignores CLAUDE_CODE_GIT_BASH_PATH environment variable on Windows

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?

The VS Code extension (v2.1.49) fails to launch Claude on Windows even when
CLAUDE_CODE_GIT_BASH_PATH is correctly set. Error message:

"Claude Code on Windows requires git-bash. 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"

Git Bash is installed and the variable has been set via:

• Windows System environment variables
• VS Code settings.json via terminal.integrated.env.windows
• VS Code settings.json via claudeCode.environmentVariables

Running "claude" directly in the VS Code integrated terminal works fine.

What Should Happen?

The extension should recognize CLAUDE_CODE_GIT_BASH_PATH and launch Claude successfully.

Error Messages/Logs

Failed to load config cache: Error: Claude Code on Windows requires git-bash
Error spawning Claude: Error: Claude Code on Windows requires git-bash

Steps to Reproduce

1. Install Git Bash on Windows (C:\Program Files\Git\bin\bash.exe)
2. Set CLAUDE_CODE_GIT_BASH_PATH as a Windows System environment variable
3. Open VS Code and open the Claude Code panel
4. Extension immediately shows the git-bash error despite variable being set correctly

Claude Model

Sonnet (default)

Is this a regression?

I don't know

Last Working Version

_No response_

Claude Code Version

2.1.50 (Claude Code)

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

PowerShell

Additional Information

_No response_