[BUG] [Regression] VS Code extension broken with multi-root workspaces

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?

Two related issues with multi-root workspaces in the VS Code extension, but this bug report is for number 2 (a regression):

1. Can't choose which workspace to open a new Claude Code tab in. When creating a new tab, it always defaults to the first folder in the multi-root workspace. There's no way to target a specific folder.
2. Rearranging folders kills existing sessions (regression). The previous workaround was to move the desired folder to the top of the multi-root workspace, then open a new tab. After a recent update (not sure which one) this workaround is broken. Rearranging the folder order causes any existing Claude Code tab to become permanently inactive. It shows the thinking/loading animation indefinitely and never recovers. The session is effectively dead and the tab must be closed. This means that, when using the VS Code extension, only one session can be open at once.

What Should Happen?

Rearranging folders in a multi-root workspace should not kill or invalidate existing Claude Code sessions

Error Messages/Logs

No explicit error messages, the existing tab just shows the thinking/loading animation perpetually after folder reorder

Steps to Reproduce

1. Open VS Code with a multi-root workspace containing 2+ folders (e.g. folders with names project-a and project-b)
2. Open a new Claude Code tab. It will open in the context of project-a, regardless of which folder is active
3. Send a message in the session (for project-a)
4. In VS Code, drag the second folder to the top of the workspace folder list
5. Send another message in the same session (for project-a). It won't go through

Claude Model

Not applicable

Is this a regression?

Yes, this worked in a previous version

Last Working Version

2.1.30

Claude Code Version

2.1.78

Platform

Not Applicable

Operating System

macOS

Terminal/Shell

Not Applicable

Additional Information

_No response_