[BUG] Login flow for VS code extension fails

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?

When I try to login using my API key in VS code, the login flow works as expected but the actual login fails at the end. Both the manual and browser auth fails. It just shows the same login options again and doesn't work.

What Should Happen?

login should work once you auth in the browser or paste the code manual. both options fail.

Error Messages/Logs

Steps to Reproduce

1. try to login
2. click anthropic console option
3. auth in the browser which works fine. login successfully, get kicked back to vs code
4. Try putting in a prompt
5. Prompted to login again

Trying the manual approach leads to a blank screen after you paste the code.

Claude Model

None

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

2.1.63

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

VS Code integrated terminal

Additional Information

_No response_