[BUG] Conversation lost and unresumable after Cursor IDE refresh

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 conversations are completely lost and cannot be resumed after refreshing Cursor (VS Code extension). This has happened 2 separate times during the same working session on a feature branch. Each time, all conversation context — including in-progress work, decisions made, and task state — was wiped with no way to recover or resume.

What Should Happen?

Conversation history should persist across IDE refreshes/restarts
At minimum, there should be a way to resume the previous session (e.g., via /resume or a session picker)
Work-in-progress context should not be permanently lost

Error Messages/Logs

Steps to Reproduce

Open Cursor with Claude Code extension active
Have an active conversation with Claude Code (in my case, working on a UI redesign feature branch with multiple back-and-forth exchanges)
Refresh Cursor (or Cursor crashes/needs restart)
Attempt to resume the previous conversation

Claude Model

Opus

Is this a regression?

I don't know

Last Working Version

_No response_

Claude Code Version

v2.1.76

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

Terminal.app (macOS)

Additional Information

This occurred using Claude Code plugin on Cursor. I've never had this issue before and its not easily repeatable, other times I can resume my conversation no problem, however the last 2 times I worked on a UI revamp for my app that included tons of screenshots and back and forth, and cursor needed to have the window refreshed or restarted, it lost the conversation completely.

Actual Behavior
Conversation is completely wiped after refresh
No option to resume or recover the previous session
All context (task progress, decisions, file changes discussed, etc.) is lost
Had to start over from scratch each time

Impact
Lost significant working context twice during the same feature branch
Had to re-explain the task and re-establish context from scratch each time
Particularly painful for long, multi-step coding sessions where Claude has built up deep context about the work
Environment
IDE: Cursor (VS Code-based)
Extension: Claude Code (VS Code native extension)
OS: macOS (Darwin 25.0.0)
Model: Claude Opus 4.6 (1M context)
Frequency: 2 out of 2 Cursor refreshes during the session