Every new cloud session immediately fails with "No conversation found with session ID". This happens with ALL new sessions, not just one.

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?

Every new cloud session immediately fails with "No conversation found with session ID".
This happens with ALL new sessions, not just one. No cloud session can be created or connected to.

What Should Happen?

Cloud sessions should connect successfully and allow interaction from VS Code.

Error Messages/Logs

Error: Claude Code returned an error result: No conversation found with session ID: 7a572258-4bcd-4ffb-9f70-358cc7fd7bb2

Additional log entries:
- Broken symlink or missing file for settings.json at path: C:\Program Files\ClaudeCode\managed-settings.json
- auto mode disabled: tengu_auto_mode_config.enabled === "disabled" (circuit breaker)
- rg error: plugins\cache: El sistema no puede encontrar el archivo especificado (os error 2)

Steps to Reproduce

Steps to Reproduce

1. Go to claude.ai/code
2. Create a new cloud session
3. Connect from VS Code
4. Immediately fails with the error above

Claude Model

Opus

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

2.1.81

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

VS Code integrated terminal

Additional Information

Tried: creating multiple sessions, "Continue here" option, sign out/in,
clearing ~/.claude cache, reinstalling extension. Nothing resolved the issue.
Local Claude Code (non-cloud) works fine.