[BUG] VS Code & Claude Code

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 keeps crashing immediately upon opening

VS Code 1.111.0, arm64 Mac
Claude Code 2.1.74
The repeating log error: Claude Code process exited with code 1 / Query closed before response received
That the CLI works fine in terminal but the extension fails consistently

What Should Happen?

Claude Code should open without errors.

Error Messages/Logs

2026-03-12 12:58:42.460 [error] Failed to load config cache: Error: Query closed before response received
2026-03-12 12:58:42.460 [error] Error processing client request: Error: Query closed before response received
2026-03-12 12:58:42.461 [info] Closing Claude on channel: qa2u7ckve1
2026-03-12 12:58:42.461 [error] Error from Claude (on channel qa2u7ckve1): Error: Claude Code process exited with code 1
2026-03-12 12:58:42.461 [info] Received message from webview: {"type":"interrupt_claude","channelId":"s058ut441oe"}
2026-03-12 12:58:42.461 [warning] Channel not found: s058ut441oe
2026-03-12 12:58:43.923 [info] Received message from webview: {"type":"request","requestId":"ada5wna1mdt","request":{"type":"open_output_panel"}}

Steps to Reproduce

1. Open Claude Code extension in VS Code

Claude Model

None

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

2.1.74 (Claude Code)

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

VS Code integrated terminal

Additional Information

_No response_