[BUG] Windows: Claude Code extension v2.1.69 crashes with exit code 3221225781 (Access Violation)

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?

Bug Description
The Claude Code VS Code extension fails immediately on launch with exit code 3221225781 (0xC0000005 - Access Violation). The bundled native binary (claude.exe) crashes silently — running it directly from PowerShell produces no output:
powershell& "$env:USERPROFILE\.vscode\extensions\anthropic.claude-code-2.1.69-win32-x64\resources\native-binary\claude.exe" --version

No output, no error — hangs or exits silently

The npm-installed CLI works perfectly:
powershellclaude --version

2.1.69 (Claude Code)

What Should Happen?

Uninstalling and reinstalling the extension (with full removal of extension directory)
Setting "claudeCode.useTerminal": true in user settings — the error persists because the extension still uses the native binary for internal operations (config cache loading)
Running the native binary directly — produces no output
Clean npm reinstall of @anthropic-ai/claude-code CLI — CLI works fine

Error Messages/Logs

[info] Spawning Claude with SDK query function - cwd: C:\Users\<user>, permission mode: default, version: 2.1.69, c:\Users\<user>\.vscode\extensions\anthropic.claude-code-2.1.69-win32-x64\resources\native-binary\claude.exe
[error] Failed to load config cache: Error: Query closed before response received
[error] Error processing client request: Error: Query closed before response received
[info] Closing Claude on channel: <channel_id>
[error] Error from Claude (on channel <channel_id>): Error: Claude Code process exited with code 3221225781

Steps to Reproduce

Install Claude Code extension from VS Code Marketplace (v2.1.69-win32-x64)
Open VS Code
Open the Claude Code panel
Extension crashes immediately

Claude Model

None

Is this a regression?

I don't know

Last Working Version

_No response_

Claude Code Version

claude --version # 2.1.69 (Claude Code)

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

PowerShell

Additional Information

Important Notes

The npm CLI works perfectly from both PowerShell and VS Code integrated terminal
The useTerminal setting does NOT prevent the extension from using the native binary for config cache and other internal operations
Exit code 3221225781 = 0xC0000005 = Windows Access Violation, suggesting the bundled Bun binary is crashing

Expected Behavior
The Claude Code extension should launch without errors and display the chat interface.
Workaround
Using claude command directly in VS Code's integrated terminal works as a temporary alternative.
Environment

Platform: Windows 10/11
VS Code Extension Version: anthropic.claude-code-2.1.69-win32-x64
Claude Code CLI Version (npm): 2.1.69 ✅ Works correctly
Node.js Version: v24.14.0
Terminal: PowerShell