[BUG] Cowork shows "Virtualization is not available" on Windows 10 Pro despite Hyper-V fully enabled

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?

What's Wrong?
Cowork tab displays "Virtualization is not available — Claude's workspace
requires Virtual Machine Platform, but the virtualization service isn't
responding." Restarting does not resolve it.

System Info

• OS: Windows 10 Pro
• Claude Desktop: 1.1.7714
• Installation: Run as Administrator

Windows Features enabled:

• Virtual Machine Platform ✅
• Windows Hypervisor Platform ✅
• Hyper-V ✅

PowerShell diagnostics:

• vmcompute: Running ✅
• vmms: Running ✅
• systeminfo Hyper-V: VM Monitor Mode Extensions: Yes ✅
• bcdedit hypervisorlaunchtype: Auto ✅
• %APPDATA%\Claude\vm_bundles: does not exist ❌ (VM never initializes)

Expected Behavior
Cowork detects virtualization is enabled and starts the workspace.

Actual Behavior
Cowork shows the error immediately. The VM never attempts to start.
No vm_bundles folder is created.

Related issues: #27316, #27384, #29532, #32004

What Should Happen?

cowork WM should start

Error Messages/Logs

Virtualization is not available
Claude's workspace requires Virtual Machine Platform, but the virtualization service isn't responding. Restart your computer to resolve this.

Steps to Reproduce

Virtualization is not available

Claude Model

None

Is this a regression?

I don't know

Last Working Version

_No response_

Claude Code Version

2.1.80 (Claude Code)

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

Other

Additional Information

_No response_