[BUG] Cowork fails to start on Windows 11 Pro with Credential Guard enabled (0xC0370103)

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?

Error message:

Failed to start Claude's workspace — VM service not running. The service failed to start.

Root cause identified:
0xC0370103 (HCS_E_SERVICE_NOT_AVAILABLE) on every VM create/start attempt. Credential Guard and VBS are running (SecurityServicesRunning: {3, 4}, VirtualizationBasedSecurityStatus: 2) and cannot be disabled via registry — Windows 11 automatically re-enables them due to hardware security requirements.
Troubleshooting already attempted:

Enabled all Hyper-V features (Microsoft-Hyper-V-All, HypervisorPlatform, VirtualMachinePlatform)
Verified VT-x enabled in BIOS
Deleted and re-downloaded VM bundle
Disabled HVCI via registry
Disabled Credential Guard via registry (EnableVirtualizationBasedSecurity=0, LsaCfgFlags=0) — settings apply but Windows overrides them on reboot

Request:
Please add compatibility support for systems with Credential Guard / VBS enabled, or provide an official workaround.

What Should Happen?

Run workspace

Error Messages/Logs

Failed to start Claude's workspace
VM service not running. The service failed to start.

Steps to Reproduce

/

Claude Model

None

Is this a regression?

I don't know

Last Working Version

_No response_

Claude Code Version

1.1.7053.0

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

Windows Terminal

Additional Information

_No response_