[BUG] Cowork stuck on "Setting up Claude's workspace" — Windows 10 Pro

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?

Cowork permanently stuck on the "Setting up Claude's workspace" loading screen. Left running 12+ hours, never completes. Restarting the app and reinstalling doesn't fix it.
Tried multiple times over several days. App restart and full reinstall do not resolve it.

What Should Happen?

Cowork workspace should finish setting up and become usable.

Error Messages/Logs

No error message displayed. The loading bar stays at approximately 80-90% indefinitely with the message "Setting up Claude's workspace — This can take a few minutes.

Steps to Reproduce

1. Open Claude Desktop
2. Click the "Cowork" tab
3. Workspace setup begins ("Setting up Claude's workspace...")
4. Loading bar never completes, even after 12+ hours

Claude Model

None

Is this a regression?

No, this never worked

Last Working Version

_No response_

Claude Code Version

1.1.7714 (3bd6f6)

Platform

Other

Operating System

Windows

Terminal/Shell

PowerShell

Additional Information

Windows 10 Pro, Build 19045 (22H2). Hyper-V is available on this edition. Note: most existing reports are from Windows 11 users — this confirms the issue also affects Windows 10 Pro.

<img width="1512" height="812" alt="Image" src="https://github.com/user-attachments/assets/482ffbbd-e279-4cd6-baa8-9a2a3370054e" />