[BUG] claudeCode.gitBashPath setting not working on Windows - panel UI still shows Git Bash error

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 VS Code panel UI fails to launch Claude even after:

1. Installing Git Bash at C:\Program Files\Git\bin\bash.exe
2. Setting CLAUDE_CODE_GIT_BASH_PATH environment variable
3. Adding "claudeCode.gitBashPath": "C:\\Program Files\\Git\\bin\\bash.exe" to settings.json
4. Fully restarting VS Code

The panel keeps showing: "Error: Claude Code on Windows requires git-bash"

Note: claude command works fine in the terminal. Only the VS Code panel UI is broken.

OS: Windows 11
Extension Version: 2.1.78

What Should Happen?

The VS Code panel UI fails to launch Claude even after:

1. Installing Git Bash at C:\Program Files\Git\bin\bash.exe
2. Setting CLAUDE_CODE_GIT_BASH_PATH environment variable
3. Adding "claudeCode.gitBashPath": "C:\\Program Files\\Git\\bin\\bash.exe" to settings.json
4. Fully restarting VS Code

The panel keeps showing: "Error: Claude Code on Windows requires git-bash"

Note: claude command works fine in the terminal. Only the VS Code panel UI is broken.

OS: Windows 11
Extension Version: 2.1.78

Error Messages/Logs

2026-03-18 19:21:38.769 [error] Error spawning Claude (on channel olx1waxp5wk): 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
2026-03-18 19:21:38.771 [info] Received message from webview: {"type":"interrupt_claude","channelId":"d1wwo2cy6q"}
2026-03-18 19:21:38.771 [warning] Channel not found: d1wwo2cy6q
2026-03-18 19:25:46.459 [info] Received message from webview: {"type":"request","requestId":"mbdzd7khyvr","request":{"type":"open_output_panel"}}

Steps to Reproduce

The VS Code panel UI fails to launch Claude even after:

1. Installing Git Bash at C:\Program Files\Git\bin\bash.exe
2. Setting CLAUDE_CODE_GIT_BASH_PATH environment variable
3. Adding "claudeCode.gitBashPath": "C:\\Program Files\\Git\\bin\\bash.exe" to settings.json
4. Fully restarting VS Code

The panel keeps showing: "Error: Claude Code on Windows requires git-bash"

Note: claude command works fine in the terminal. Only the VS Code panel UI is broken.

OS: Windows 11
Extension Version: 2.1.78

Claude Model

None

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

2.1.78 (Claude Code)

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

PowerShell

Additional Information

_No response_