[BUG] VS Code Extension ignores CLAUDE_CODE_GIT_BASH_PATH environment variable on Windows

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?

The Claude Code VS Code extension on Windows throws a git-bash error and refuses to launch, even though Git Bash is installed, bash.exe exists at the expected path (C:\Program Files\Git\bin\bash.exe), and the CLAUDE_CODE_GIT_BASH_PATH environment variable is set correctly. The extension completely ignores all configuration and fails immediately on activation.

What Should Happen?

The extension should detect the existing bash.exe at C:\Program Files\Git\bin\bash.exe and launch successfully. Alternatively, it should respect the CLAUDE_CODE_GIT_BASH_PATH environment variable when set.

Error Messages/Logs

2026-03-13 11:26:48.248 [info] Claude code extension is now active?
2026-03-13 11:26:48.248 [info] MCP Server running on port 10200 (localhost only)
2026-03-13 11:26:48.248 [info] AuthManager initialized
2026-03-13 11:26:48.248 [error] Failed to load config cache: Error: Claude Code on Windows requires git-bash (https://git-scm.com/downloads/win). If installed but not in PATH, set environment variable pointing to your bash.exe, similar to: CLAUDE_CODE_GIT_BASH_PATH=C:\Program Files\Git\bin\bash.exe
2026-03-13 11:26:48.248 [error] Error processing client request: Error: Claude Code on Windows requires git-bash (https://git-scm.com/downloads/win). If installed but not in PATH, set environment variable pointing to your bash.exe, similar to: CLAUDE_CODE_GIT_BASH_PATH=C:\Program Files\Git\bin\bash.exe
2026-03-13 11:26:48.249 [error] Error spawning Claude (on channel 2y6cvk1wo5h): Error: Claude Code on Windows requires git-bash (https://git-scm.com/downloads/win). If installed but not in PATH, set environment variable pointing to your bash.exe, similar to: CLAUDE_CODE_GIT_BASH_PATH=C:\Program Files\Git\bin\bash.exe

Steps to Reproduce

Steps to Reproduce

Install Git for Windows from https://git-scm.com/downloads/win (includes Git Bash)
Install Claude Code VS Code extension
Verify bash.exe exists at C:\Program Files\Git\bin\bash.exe — it does
Set CLAUDE_CODE_GIT_BASH_PATH as a Windows System Environment Variable pointing to C:\Program Files\Git\usr\bin\bash.exe
Also add to VS Code settings.json:

json"terminal.integrated.env.windows": {
"CLAUDE_CODE_GIT_BASH_PATH": "C:\\Program Files\\Git\\usr\\bin\\bash.exe"
},
"claudeCode.gitBashPath": "C:\\Program Files\\Git\\usr\\bin\\bash.exe"

Fully restart PC
Open VS Code and launch Claude Code panel
Error appears immediately

Verification that bash works fine:
$ "C:\Program Files\Git\bin\bash.exe" --version
GNU bash, version 5.2.37(1)-release (x86_64-pc-msys)

$ "C:\Program Files\Git\bin\bash.exe" -c "echo works"
works
Note: Running claude directly from a Git Bash terminal works perfectly. Issue is only with the VS Code extension.

Claude Model

None

Is this a regression?

No, this never worked

Last Working Version

Unknown — first time installing the extension on this machine

Claude Code Version

2.1.74 (Claude Code)

Platform

Other

Operating System

Windows

Terminal/Shell

Other

Additional Information

Git Bash (MINGW64)

Additional Information
Tried all of the following with no success:

Setting CLAUDE_CODE_GIT_BASH_PATH via setx command in Git Bash terminal
Setting it in Windows System Environment Variables (System-level, not just User)
Setting terminal.integrated.env.windows in VS Code settings.json
Setting claudeCode.gitBashPath in VS Code settings.json
Full PC restart after every attempt

The extension appears to completely ignore the CLAUDE_CODE_GIT_BASH_PATH environment variable regardless of how it is set.