[BUG] Cowork VM fails with HCS 0x800707de on Windows 10 Home after reinstall:

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?

HCS operation failed: failed to create compute system: HcsWaitForOperationResult failed with HRESULT 0x800707de: {"Error":-2147022882,"ErrorMessage":"","Attribution":[{"OperationFailure":{"Detail":"Construct"}}]}

What Should Happen?

Environment

• OS: Windows 10 Home, Build 26200.7840
• Claude Desktop: v1.1.6041.0 (Microsoft Store)
• WSL2: 2.6.3.0 / Kernel: 6.6.87.2-1

What happened
After uninstalling and reinstalling Claude Desktop, the Cowork workspace
fails to start every time with the following error:

HCS operation failed: failed to create compute system:
HcsWaitForOperationResult failed with HRESULT 0x800707de:
{"Error":-2147022882,"ErrorMessage":"","Attribution":
[{"OperationFailure":{"Detail":"Construct"}}]}

This was working correctly before the reinstall.

What I tried

• Deleted vm_bundles, claude-code-vm, local-agent-mode-sessions folders
• Restarted vmcompute service
• Reinstalled workspace from within the app
• hcsdiag list — empty (no stale VMs)
• Get-HnsNetwork — empty (no stale networks)
• WSL2 is installed and working correctly (wsl --version confirms v2)

Error Messages/Logs

**Log (cowork_vm_node.log)**
[VM:start] Configuring Windows VM service...
[VM:start] Windows VM service configured
[VM:start] VM boot failed: HCS operation failed: failed to create 
compute system: HcsWaitForOperationResult failed with HRESULT 0x800707de

VM gets configured successfully but fails at HCS Construct phase.
Auto-reinstall was skipped (already attempted once).

Steps to Reproduce

Expected behavior
Cowork workspace should start normally as it did before reinstall.

Claude Model

Sonnet (default)

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

1.1.6041.0

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

PowerShell

Additional Information

_No response_