[BUG] Claude code stuck on VS Code

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?

I just upgraded to claude paid subscription and my claude code assistant is stuck on VS Code (I used to use the claude desktop app which now doesn't work because it is just an add for Claude Code and links me to the webbrowser). I tried uninstalling the extension and reinstalling. I am runnnig the latest version (2.1.81 (Claude Code)) and I restarted VS code and nothing seems to work. I initially logged in to claude code on VS code via the terminal because that too was stuck on "signing in"

What Should Happen?

answer prompts

Error Messages/Logs

stuck in "Honking", "Moseying", "Vibing", etc.

Steps to Reproduce

1 - open VS code
2 - click on Claude code icon on upper right of VS code
3 - type hello in the prompt

Claude Model

Not sure / Multiple models

Is this a regression?

No, this never worked

Last Working Version

_No response_

Claude Code Version

2.1.81

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

Windows Terminal

Additional Information

_No response_