[BUG] [VSCode] Tools don't consistently appear in Context dropdown despite being actively used

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?

Tools don't consistently show up in the Context dropdown on the right panel even though Claude is definitely using them.

Example: Claude tells the user it's using "Visualize" (an MCP tool), but the tool doesn't appear in the Context dropdown.

What Should Happen?

When Claude uses a tool, that tool should be reflected in the Context dropdown/panel in the VS Code extension so users can see what tools are being utilized.

Error Messages/Logs

No error messages - the tool simply doesn't appear in the Context dropdown even when Claude confirms it's being used.

Steps to Reproduce

1. Open VS Code with Claude Code extension
2. Have Claude use an MCP tool (e.g., "Visualize")
3. Observe that Claude states it's using the tool
4. Check the Context dropdown in the right panel
5. Notice the tool is missing from the Context list

Claude Model

_No response_

Is this a regression?

I don't know

Last Working Version

_No response_

Claude Code Version

_No response_

Platform

_No response_

Operating System

_No response_

Terminal/Shell

_No response_

Additional Information

This issue may be related to:

• #40766 - MCP tools available in CLI but missing from VSCode extension panel
• #40975 - MCP Tools never surfaced to the model despite server being connected

However, this specific bug describes a UI synchronization issue where tools are actively being used (Claude confirms usage) but the Context dropdown doesn't reflect this state. The other issues are about tools not being available at all.

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Slack thread: https://anthropic.slack.com/archives/C05KW35GX4L/p1774987675174379?thread_ts=1774981289.347059&cid=C05KW35GX4L