[BUG] VSCode extension update broke conversation history dropdown

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?

• Extension updated overnight (Mar 17) - to version 2.1.78
• Past conversations dropdown not rendering

Conversations exist on disk in ~/.claude/file-history/ (70 folders, recent ones from today).
history.jsonl is just CLI input history, not conversations

• Seemingly unrelated, but noted by Claude Code - Auth not persisting to keychain (no keychain entry despite being logged in)
• macOS version: Darwin 25.3.0
• VSCodium version: 1.110.11631

What Should Happen?

Past conversations should be accessible in the UI.

Error Messages/Logs

Steps to Reproduce

1. Open a VS Code project
2. Look for drop-down of past projects
3. See that it is not rendered (no error)

Claude Model

Opus

Is this a regression?

Yes, this worked in a previous version

Last Working Version

2.1.77

Claude Code Version

2.1.25 (Claude Code)

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

VS Code integrated terminal

Additional Information

_No response_