VS Code Extension: UI Features Broken After CLI Update

Bug Description
Subject: VS Code extension downgraded after CLI update - lost UI features

Description:

• Had working Claude Code VS Code extension with UI icon in top-right toolbar and integrated file system access
• After being advised to update/reinstall the extension and CLI, lost all UI features
• Now only have basic terminal connection instead of full integrated experience
• CLI version: 1.0.40 (npm-local install via Homebrew)
• VS Code extension version: 1.0.31 (keeps installing this older version)
• Version mismatch appears to have broken the full UI integration
• Extension reinstalls/uninstalls don't restore the previous working UI
• Need way to get back to the working version that had the proper VS Code integration with toolbar icon and file access

Expected: Full UI integration with Claude icon in VS Code toolbar
Actual: Only terminal connection, no UI elements

The core issue is the version mismatch and loss of the integrated UI features you had before.

Environment Info

• Platform: darwin
• Terminal: iTerm.app
• Version: 1.0.40
• Feedback ID: 86891ce3-c1ca-41d4-902c-493cace61350

Errors

[{"error":"Error: Command failed: security find-generic-password -a $USER -w -s \"Claude Code\"\nsecurity: SecKeychainSearchCopyNext: The specified item could not be found in the keychain.\n\n    at genericNodeError (node:internal/errors:983:15)\n    at wrappedFn (node:internal/errors:537:14)\n    at checkExecSyncError (node:child_process:892:11)\n    at execSync (node:child_process:964:15)\n    at FI (file:///Users/greg/.claude/local/node_modules/@anthropic-ai/claude-code/cli.js:702:3921)\n    at file:///Users/greg/.claude/local/node_modules/@anthropic-ai/claude-code/cli.js:623:9038\n    at Q (file:///Users/greg/.claude/local/node_modules/@anthropic-ai/claude-code/cli.js:526:13327)\n    at _X (file:///Users/greg/.claude/local/node_modules/@anthropic-ai/claude-code/cli.js:623:8184)\n    at H_ (file:///Users/greg/.claude/local/node_modules/@anthropic-ai/claude-code/cli.js:623:7265)\n    at U9 (file:///Users/greg/.claude/local/node_modules/@anthropic-ai/claude-code/cli.js:623:11432)","timestamp":"2025-07-02T04:37:23.360Z"},{"error":"Error: Command failed: security delete-generic-password -a $USER -s \"Claude Code\"\nsecurity: SecKeychainSearchCopyNext: The specified item could not be found in the keychain.\n\n    at genericNodeError (node:internal/errors:983:15)\n    at wrappedFn (node:internal/errors:537:14)\n    at checkExecSyncError (node:child_process:892:11)\n    at execSync (node:child_process:964:15)\n    at FI (file:///Users/greg/.claude/local/node_modules/@anthropic-ai/claude-code/cli.js:702:3921)\n    at mpA (file:///Users/greg/.claude/local/node_modules/@anthropic-ai/claude-code/cli.js:623:10150)\n    at hpA (file:///Users/greg/.claude/local/node_modules/@anthropic-ai/claude-code/cli.js:623:10024)\n    at p9A (file:///Users/greg/.claude/local/node_modules/@anthropic-ai/claude-code/cli.js:2158:2567)\n    at l9A.startOAuthFlow (file:///Users/greg/.claude/local/node_modules/@anthropic-ai/claude-code/cli.js:2158:3689)\n    at process.processTicksAndRejections (node:internal/process/task_queues:105:5)","timestamp":"2025-07-02T04:37:37.268Z"},{"error":"Error: Command failed: security find-generic-password -a $USER -w -s \"Claude Code\"\nsecurity: SecKeychainSearchCopyNext: The specified item could not be found in the keychain.\n\n    at genericNodeError (node:internal/errors:983:15)\n    at wrappedFn (node:internal/errors:537:14)\n    at checkExecSyncError (node:child_process:892:11)\n    at execSync (node:child_process:964:15)\n    at FI (file:///Users/greg/.claude/local/node_modules/@anthropic-ai/claude-code/cli.js:702:3921)\n    at file:///Users/greg/.claude/local/node_modules/@anthropic-ai/claude-code/cli.js:623:9038\n    at Q (file:///Users/greg/.claude/local/node_modules/@anthropic-ai/claude-code/cli.js:526:13327)\n    at _X (file:///Users/greg/.claude/local/node_modules/@anthropic-ai/claude-code/cli.js:623:8184)\n    at H_ (file:///Users/greg/.claude/local/node_modules/@anthropic-ai/claude-code/cli.js:623:7265)\n    at U9 (file:///Users/greg/.claude/local/node_modules/@anthropic-ai/claude-code/cli.js:623:11432)","timestamp":"2025-07-02T04:37:37.321Z"},{"error":"RangeError [ERR_CHILD_PROCESS_STDIO_MAXBUFFER]: stdout maxBuffer length exceeded\n    at Socket.onChildStdout (node:child_process:482:14)\n    at Socket.emit (node:events:507:28)\n    at Socket.emit (node:domain:489:12)\n    at addChunk (node:internal/streams/readable:559:12)\n    at readableAddChunkPushByteMode (node:internal/streams/readable:510:3)\n    at Readable.push (node:internal/streams/readable:390:5)\n    at Pipe.onStreamRead (node:internal/stream_base_commons:189:23)","timestamp":"2025-07-02T04:37:54.730Z"},{"error":"SyntaxError: Unexpected non-whitespace character after JSON at position 55 (line 6 column 1)\n    at JSON.parse (<anonymous>)\n    at file:///Users/greg/.claude/local/node_modules/@anthropic

Note: Error logs were truncated.