[BUG] Installing the Claude Code plugin for VS Code corrupts

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 installed both Claude Code and the Claude Code plugin for VS Code yesterday.

It corrupted my VS Code Github Copilot Chat History.

What Should Happen?

Claude Code should act independent of, or coexist peacefully with, Github Copilot's VS Code Extension

Error Messages/Logs

Steps to Reproduce

1. Install VS Code and the Github Copilot Plugin. Use this successfully for months.
2. Install Claude Code
3. Install the Claude Code VS Code Plugin
4. Try to go and use Github Copilot plugin to continue a conversation from the previous day

You will now find (if you have my experience) that the Github Copilot chats are all inaccessible!

1. Disable the Claude Code extension and restart VS Code

The chats are still gone/inaccessible!

Claude Model

None

Is this a regression?

I don't know

Last Working Version

_No response_

Claude Code Version

2.1.85 (Claude Code)

Platform

AWS Bedrock

Operating System

Windows

Terminal/Shell

Other

Additional Information

<img width="1136" height="457" alt="Image" src="https://github.com/user-attachments/assets/730f0244-1358-4b20-91d6-31de7d66508d" />

My Github Copilot CHAT tab now shows only recent Claude conversations. Furthermore, clicking on conversations in the CHAT tab does nothing -- I cannot resume these old chats.