[BUG] Claude Code freezes in VS Code (extension + integrated terminal) - Only native Mac Terminal works - Started March 29, 2026

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?

Claude Code freezes indefinitely in VS Code - both the extension AND the integrated terminal. Shows spinner ("Generating...", "Herding...", "Computing...") forever. Must force-quit VS Code to stop.

Native Mac Terminal app running claude works fine. Claude.ai desktop works fine. Only VS Code environment is broken.

Started Sunday March 29, 2026. Was working Saturday March 28. Claude Max subscriber

What Should Happen?

Claude Code should respond to prompts in VS Code extension and integrated terminal, same as it does in native Mac Terminal.

Error Messages/Logs

No error messages. Just infinite spinner. /doctor shows all healthy.

Steps to Reproduce

1. Open VS Code on macOS
2. Open Claude Code extension panel
3. Type any prompt (e.g., "hello")
4. Observe: spinner runs forever, no response
5. Alternative: Open VS Code integrated terminal, run claude, type any prompt
6. Same result: hangs indefinitely
7. Open native Mac Terminal.app, run claude, type same prompt
8. Works instantly

Claude Model

Opus

Is this a regression?

Yes, this worked in a previous version

Last Working Version

2.1.87 (same version - worked Saturday March 28, broke Sunday March 29) but there were some other issues since upgrade

Claude Code Version

2.1.87

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

VS Code integrated terminal

Additional Information

Key finding: Same claude binary (2.1.87) works in native Mac Terminal.app but freezes in VS Code integrated terminal AND VS Code extension. This points to VS Code-specific environment issue, not the CLI itself.

Troubleshooting already done:

• Removed stale lock files from ~/.claude/ide/
• Disabled MCP servers requiring OAuth
• Uninstalled/reinstalled VS Code extension
• Restarted VS Code and computer
• /doctor shows all healthy

Claude.ai desktop app also works fine. Only VS Code environment affected.

Deleted and updated extension for Claude, also VSCode is up to dater