[BUG] Cowork stuck on "Setting up workspace" - CoworkVMService fails to start on 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?

Windows 11 Home 25H2
CoworkVMService: Stopped, cannot start
Error: signature verification initialization failed:
failed to get service executable path
Tried: reinstall, repair, reset - all failed

What Should Happen?

Cowork workspace should start successfully and be ready to use.

Error Messages/Logs

Steps to Reproduce

1. Install Claude Desktop on Windows 11 Home 25H2
2. Open Cowork tab
3. Workspace stuck on "Setting up Claude's workspace" forever

Claude Model

None

Is this a regression?

No, this never worked

Last Working Version

_No response_

Claude Code Version

1.1.7714.0

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

PowerShell

Additional Information

_No response_