Claude in Chrome fails with "Browser extension is not connected."

When trying to use Claude in Chrome from Claude Code I get this:

⏺ Claude in Chrome[tabs_context]
  ⎿  Browser extension is not connected. Please ensure the Claude browser extension is installed and running (https://claude.ai/chrome), and that you are logged
     into claude.ai with the same account as Claude Code. If this is your first time connecting to Chrome, you may need to restart Chrome for the installation to
     take effect. If you continue to experience issues, please report a bug: https://github.com/anthropics/claude-code/issues/new?labels=bug,claude-in-chrome

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Chrome extension is installed, enabled and signed-in with the same account as CC:

<img width="395" height="749" alt="Image" src="https://github.com/user-attachments/assets/ab7e0f93-4dcc-40dd-afb3-c4248a71b74c" /><img width="430" height="227" alt="Image" src="https://github.com/user-attachments/assets/4b70ac24-4472-47b7-a9cb-b19a54cc4b0a" />

Claude desktop is installed and "Claude in Chrome" extension is enabled:

<img width="904" height="668" alt="Image" src="https://github.com/user-attachments/assets/57070605-e81f-43e2-9a9b-3841392985b0" />

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I start CC with --chrome option.

Chrome is up-to-date and freshly restarted.

The extension was working before on this machine with the same setup.

Claude version is v2.1.81