[BUG] VS Code extension activation fails on Windows 2.1.51

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?

Extension fails to activate on Windows 11.
Error in Developer Tools console:
Activating extension 'Anthropic.claude-code' failed:
Received 'file:///home/runner/work/claude-cli-internal/claude-cli-internal/build-agent-sdk/sdk.mjs'.

This causes: Error: command 'claude-vscode.editor.openLast' not found

Version: 2.1.51-win32-x64
OS: Windows 11

What Should Happen?

Extension should activate successfully and register commands including claude-vscode.editor.openLast.

Error Messages/Logs

Activating extension 'Anthropic.claude-code' failed: The argument 'filename' must be a file URL object, file URL string, or absolute path string. Received
  'file:///home/runner/work/claude-cli-internal/claude-cli-internal/build-agent-sdk/sdk.mjs'.

Error: command 'claude-vscode.editor.openLast' not found

Steps to Reproduce

1. Install Claude Code VS Code extension 2.1.51 on Windows 11
2. Open VS Code
3. Error appears immediately on startup

Claude Model

None

Is this a regression?

Yes, this worked in a previous version

Last Working Version

Unknown

Claude Code Version

2.1.51-win32-x64

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

Terminal.app (macOS)

Additional Information

_No response_