[BUG] Claude Code Desktop App - Process exits with code 1 after auto-update (March 20, 2026)

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?

After the Claude Desktop app auto-updated on March 20, 2026, Claude Code stopped responding in the desktop app. Messages are sent but no response is received, and the input field becomes disabled afterward.

What Should Happen?

Claude Code should respond normally in the desktop app as it did before the update.

Error Messages/Logs

Session local_XXXXXX query error: Claude Code process exited with code 1
[CCD CycleHealth] unhealthy cycle (0s, hadFirstResponse=false, reason=no_response)
[CCD] Passing 1 plugin(s) to SDK (skills: 1, local: 0)
← crash occurs immediately after passing skills plugin

Steps to Reproduce

1. Claude Desktop app auto-updated on March 20, 2026
2. Open Claude Desktop app
3. Start a new Claude Code session in any project folder
4. Type any message and send
5. No response is received, input field becomes disabled

Key findings:

• Terminal claude (v2.1.80) works perfectly fine
• Desktop app uses bundled binary (v2.1.78) which crashes
• Crash occurs immediately after skills plugin is passed to the SDK
• Tried: reinstalling app, clearing all settings, deleting ~/.claude/, deleting claude-code-sessions, deleting skills-plugin cache — all failed
• Skills plugin folder is automatically re-downloaded and crash persists

Claude Model

Sonnet (default)

Is this a regression?

Yes, this worked in a previous version

Last Working Version

Before March 20, 2026 auto-update

Claude Code Version

Desktop bundled: 2.1.78 Terminal: 2.1.80 (works fine)

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

Terminal.app (macOS)

Additional Information

Claude Desktop version: 1.1.7714
The issue is specifically triggered when the skills plugin is passed to the SDK.
Terminal claude works perfectly — only the desktop app bundled binary (2.1.78) crashes.