VS Code extension fails to detect project when path contains Unicode characters (umlauts)

Bug Description

The Claude Code extension (v2.1.78) does not detect/recognize a project folder when the file path contains Unicode characters (German umlauts).

Steps to Reproduce

1. Create a project folder with umlauts in the name, e.g. C:\Firma\STUEUERNETT (with umlauts)
2. Place a valid .claude/ directory inside it
3. Open the folder in VS Code / VSCodium
4. The extension does not recognize it as a Claude Code project

Expected vs Actual

• Expected: Extension detects .claude/ and recognizes the project
• Actual: Project not detected. A sibling folder without umlauts (Waadloeper) IS detected.

Environment

• Windows 11 Pro, VSCodium 1.110 / VS Code 1.111
• Claude Code Extension v2.1.78
• Broken path contains German umlauts
• Working path has no special chars