[BUG] Last update 2.1.51 trashed my VS Code setup

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?

Totally trashed my environment. Cannot even continue to work.

What Should Happen?

Work as before

Error Messages/Logs

Steps to Reproduce

Open visual studio code with claude extension installed. All broken now. Even if I uninstall/install cycle. Severe quality issues with that program.

Claude Model

Opus

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

2.1.51

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

VS Code integrated terminal

Additional Information

<img width="456" height="907" alt="Image" src="https://github.com/user-attachments/assets/0f41a4bb-9c66-46aa-956f-a1d06bbecbac" />