[BUG] Claude Code crashes on Windows Enterprise - EPERM: operation not permitted, uv_spawn 'reg'

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?

Claude Code extension fails to start on versions after 2.1.49. The claude.exe binary
tries to spawn reg.exe (Windows Registry command) at startup, which is blocked by
enterprise Group Policy. The extension crashes immediately with exit code 1.

What Should Happen?

Claude Code should start normally without requiring reg.exe, or gracefully fall back
when reg.exe is blocked. Version 2.1.49 works fine without needing reg.exe.

Error Messages/Logs

EPERM: operation not permitted, uv_spawn 'reg'
path: "reg",
syscall: "uv_spawn",
errno: -1,
code: "EPERM"
Followed by:
Failed to load config cache: Error: Query closed before response received
Error from Claude: Error: Claude Code process exited with code 1

Steps to Reproduce

1. Use Windows 11 Enterprise with Group Policy that blocks spawning reg.exe
2. Install Claude Code extension version 2.1.72 (or any version after 2.1.49)
3. Open VSCode
4. Claude Code crashes immediately on startup with the above EPERM error
5. Downgrading to 2.1.49 resolves the issue

Claude Model

Opus

Is this a regression?

Yes, this worked in a previous version

Last Working Version

2.1.49

Claude Code Version

2.1.72

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

VS Code integrated terminal

Additional Information

• OS: Windows 11 Enterprise 10.0.26100
• Auth: Claude.ai OAuth (team subscription) - credentials stored in .credentials.json
• Setting ANTHROPIC_API_KEY environment variable does not help
• Clean reinstall does not help
• The reg.exe call was introduced after 2.1.49 and appears unrelated to credential storage
• Only workaround: pin extension to version 2.1.49

<img width="362" height="75" alt="Image" src="https://github.com/user-attachments/assets/6cb47108-3951-437e-8424-01d3284229c5" />