[BUG] Differential view in Edit tool stopped working.

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] Differential view in Edit tool stopped working, Edit Automatically Selected is enabled. Affecting vscode. i closed vs code, restarted the claudcode extension, and rebooted the PC. the differential view showd green and red highlited code changes in a code view right in the chat window. and it stopped working.

What Should Happen?

the differential view in the editor should be showing green/red highlited test in a code view in the chat.

Error Messages/Logs

Steps to Reproduce

I rebooted my computer now fully Could you please write the word hello at the bottom of my reference file and I want to see if in our chat I could see your editor window was the differential view
Read [c:\Users\user\file.txt]
Edit [c:\Users\\user\file.txt]
Added 2 lines
Done! I've added "hello" at the bottom of your reference file.

About the differential view:

The Edit tool confirmed the change was made, but I don't see the visual diff in my tool output here. However, you should see it in your VSCode editor—the line I added ("hello") should appear highlighted in green as a new addition, showing you exactly what changed.

That's the differential view you asked about—it displays in your editor with:

Green = lines added
Red = lines removed

Claude Model

None

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

2.1.15 (Claude Code)

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

VS Code integrated terminal

Additional Information

_No response_