[BUG] Cowork stuck on "Setting up Claude's workspace" — Windows 11 Home

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?

Cowork tab is permanently stuck on "Setting up Claude's workspace" on Windows 11 Home. The VM downloads successfully but always times out at the create_vm_config step after exactly 5 minutes with "Request timed out: configure". Also seeing a VHDX path mismatch — the VM service looks for files in AppData\Local\Packages\Claude_pzs8sxrjxfjjc\LocalCache\Roaming\Claude\vm_bundles but the app downloads them to AppData\Roaming\Claude\vm_bundles. Tried: uninstall/reinstall, clear cache, delete VM bundle, remove CoworkVMService via AppxPackage removal. Nothing works. App version: 1.1.7714.0, Windows 11 Home, HypervisorPlatform and VirtualMachinePlatform both Enabled.

What Should Happen?

Cowork should work on Windows 11 Home, or display a clear error message stating it's unsupported rather than hanging indefinitely.

Error Messages/Logs

[VM:steps] create_vm_config started
[VM:start] Startup failed: Error: Request timed out: configure
[VM:start] Startup failed: Error: failed to set VHDX path: VHDX file not found: C:\Users\xnoha\AppData\Local\Packages\Claude_pzs8sxrjxfjjc\LocalCache\Roaming\Claude\vm_bundles\claudevm.bundle\rootfs.vhdx

Steps to Reproduce

1. Install Claude Desktop on Windows 11 Home
2. Open the app and click the Cowork tab
3. Workspace setup begins and progress bar appears
4. App hangs indefinitely — never completes setup
5. Log shows 5-minute timeout at create_vm_config step

Claude Model

None

Is this a regression?

No, this never worked

Last Working Version

_No response_

Claude Code Version

1.1.7714.0

Platform

Other

Operating System

Windows

Terminal/Shell

PowerShell

Additional Information

Windows 11 Home specifically. HypervisorPlatform and VirtualMachinePlatform both enabled. VM service (CoworkVMService) starts but times out communicating with hypervisor. Possible Win 11 Home Hyper-V limitation.