[BUG] The Claude Code Extension for VS Code (v2.1.61) freezes on Windows 11 ARM64.

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 Claude Code chat panel within the extension freezes and is not functional.
As a workaround, I disabled the extension and am running Claude Code directly in the VS Code terminal (claude), which works fine.

What Should Happen?

The Claude Code chat panel should work within the VS Code extension.

Error Messages/Logs

No error messages. The extension freezes and shows a restoring/loading icon but never finishes loading.

Steps to Reproduce

1. Install the Claude Code Extension for VS Code (v2.1.61) on Windows 11 ARM64
2. Open the Claude Code chat panel in VS Code
3. The chat panel freezes

Claude Model

None

Is this a regression?

I don't know

Last Working Version

_No response_

Claude Code Version

2.1.53 (Claude Code)

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

VS Code integrated terminal

Additional Information

Disabling the Claude Code Extension and using Claude Code directly in the terminal (claude) works fine. There are no error messages in the Claude Code chat panel — it simply freezes and shows a loading/restoring icon that never completes.