[BUG] My Cowork is not functioning

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?

While uplaoding any folder or project in cowork, I'm getting this error message. I just went through the powershell check
FeatureName : HypervisorPlatform
DisplayName : Windows Hypervisor Platform
Description : Enables virtualization software to run on the Windows hypervisor
RestartRequired : Possible
State : Enabled
CustomProperties : which is absoltely correct.

What Should Happen?

Is there any other way i tried multiple ways and reinstalled and fixed all the path using powershell but no use i still getting the same error which clearly uploaded the screenshot below.

<img width="1902" height="1028" alt="Image" src="https://github.com/user-attachments/assets/ca1b2d7e-4fa1-4039-b5df-e7195c98d969" />

Error Messages/Logs

HCS operation failed: failed to start VM: HcsWaitForOperationResult failed with HRESULT 0x80070005: {"Error":-2147024891,"ErrorMessage":"Access is denied.","ErrorEvents":[{"Message":"","Provider":"51ddfa29-d5c8-4803-be4b-2ecb715570fe","EventId":12030,"Flags":13,"Data":[{"Type":"String","Value":"cowork-vm"},{"Type":"String","Value":"960E110C-FC59-5B4B-843D-68737D617893"}]},{"Message":"","Provider":"51ddfa29-d5c8-4803-be4b-2ecb715570fe","EventId":12010,"Flags":5,"Data":[{"Type":"String","Value":"cowork-vm"},{"Type":"String","Value":"960E110C-FC59-5B4B-843D-68737D617893"},{"Type":"String","Value":"Synthetic Storage"},{"Type":"String","Value":"%%2147942405"},{"Type":"String","Value":"0x80070005"},{"Type":"String","Value":"1FF46D3F-E712-5DBC-9813-AAD51981A2E9"},{"Type":"String","Value":""}]},{"Message":"'cowork-vm': Account does not have permission to open attachment 'C:\\Users\\Admin\\AppData\\Local\\Packages\\Claude_pzs8sxrjxfjjc\\LocalCache\\Roaming\\Claude\\vm_bundles\\claudevm.bundle\\sessiondata.vhdx (Lun 2)'. Error: 'Access is denied.' (0x80070005). (Virtual machine ID 960E110C-FC59-5B4B-843D-68737D617893)","Provider":"edacd782-2564-4497-ade6-7199377850f2","EventId":12290,"Flags":5,"Data":[{"Type":"String","Value":"cowork-vm"},{"Type":"String","Value":"960E110C-FC59-5B4B-843D-68737D617893"},{"Type":"String","Value":"C:\\Users\\Admin\\AppData\\Local\\Packages\\Claude_pzs8sxrjxfjjc\\LocalCache\\Roaming\\Claude\\vm_bundles\\claudevm.bundle\\sessiondata.vhdx (Lun 2)"},{"Type":"String","Value":"%%2147942405"},{"Type":"String","Value":"0x80070005"},{"Type":"String","Value":""},{"Type":"String","Value":""}]}],"Attribution":[{"OperationFailure":{"Detail":"Start"}},{"VirtualDeviceFailure":{"Detail":"PowerOnCold","Name":"Synthetic Storage","DeviceId":"d422512d-2bf2-4752-809d-7b82b5fcb1b4","InstanceId":"1ff46d3f-e712-5dbc-9813-aad51981a2e9"}}]}

Steps to Reproduce

1. opened the desktop app
2. Clicked Cowork
3. Struck with error.

Claude Model

Sonnet (default)

Is this a regression?

No, this never worked

Last Working Version

_No response_

Claude Code Version

1.1.8359.0

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

PowerShell

Additional Information

<img width="1902" height="1028" alt="Image" src="https://github.com/user-attachments/assets/a394d97a-4413-4d1a-9c60-d1828d4541f7" />