[BUG] Windows 10 Pro, all services running, empty %APPDATA%\Claude folder

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?

the %APPDATA%\Claude folder is completely empty, meaning Claude Desktop has never successfully initialized the Cowork VM on my machine.
At this point my system is correctly configured:

✅ Hyper-V enabled
✅ Virtual Machine Platform enabled
✅ HypervisorPlatform enabled
✅ vmms and vmcompute services running
✅ hypervisorlaunchtype = Auto
✅ Windows 10 Pro

What Should Happen?

Claude should come up and work. I can get the basic Claude to work after installng

Error Messages/Logs

Steps to Reproduce

Install Claude on Windows 10 Pro machine - this happens at startup of Claude in the cowork screen

Claude Model

Not sure / Multiple models

Is this a regression?

I don't know

Last Working Version

_No response_

Claude Code Version

1.1.7714 (3bd6f6)

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

PowerShell

Additional Information

<img width="1122" height="903" alt="Image" src="https://github.com/user-attachments/assets/5f1d0fa0-b137-4bbb-88eb-314e93049649" />