[BUG] Session name in VSCode extension reverts after manual rename

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?

When renaming a session via the pencil icon in the sidebar,
the name reverts to the auto-generated title after a moment.

What Should Happen?

Expected: custom name persists
Actual: name resets to auto-generated title

Environment: Claude Code VSCode extension

Error Messages/Logs

Steps to Reproduce

1. Open Claude Code VSCode extension
2. Start a session
3. Rename the session using the pencil icon in the sidebar
4. The name reverts to the auto-generated title

Claude Model

None

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

V2.1.87

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

VS Code integrated terminal

Additional Information

_No response_