CLI launch opens 3 empty VS Code windows (v2.1.69, Windows)

Description

Starting claude from the CLI (Git Bash terminal) opens 3 new empty VS Code windows every time. This started with the v2.1.69 update — v2.1.68 did not exhibit this behavior.

Environment

• Claude Code CLI: 2.1.69 (npm global install)
• VS Code Extension: anthropic.claude-code 2.1.69 (auto-updated from 2.1.68)
• OS: Windows 11 (MINGW64_NT-10.0-26200, Git Bash)
• Settings: "teammateMode": "in-process", "claudeCode.preferredLocation": "panel"

Steps to Reproduce

1. Have VS Code open with Claude Code extension v2.1.69
2. Open a Git Bash terminal (outside VS Code)
3. Run claude
4. 3 new empty VS Code windows immediately appear

Process Trace

The 3 windows are VS Code renderer processes (--type=renderer) with unique --vscode-window-config UUIDs, spawned by the main VS Code process. Each window spawns its own extension host (~1.4 GB) plus language servers (HTML, JSON, Edge DevTools webhint).

Total per CLI launch: ~20 new Code.exe processes, ~5 GB additional memory.

The workspace storage entries are timestamp-based with no folder reference — empty/untitled workspaces.

Workaround

Disabling the VS Code extension prevents the issue.

Expected Behavior

Running claude from CLI should not open VS Code windows.