[BUG] VSCode addon: frequent crashes causing excessive token usage

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?

The VSCode addon fails frequently for different reasons. Sometimes it is font issues; other times it is a security issue or broken URL. It wastes tokens because there is no way to resume without stopping and issuing another prompt, which starts the task from scratch, draining tokens along the way.

The UI does not report any error. Instead, Claude's status messages — such as "thinking," "ideating," and similar feedback — keep cycling on the screen without making any progress, giving no indication of what went wrong. You need to toggle developer tools to see the error.

Although the IDE is VSCodium, it is the same for VSCode with the official addon. I went back and forth between VSCode and VSCodium to see if it is the IDE or the settings; the result is the same.

<img width="2050" height="1290" alt="Image" src="https://github.com/user-attachments/assets/885d41ad-33af-4085-8818-e4062151e531" />

What Should Happen?

The addon should not crash in the first place. If it does, it should be able to resume from where it left off without consuming additional tokens. Proper error reporting would also help users understand what went wrong.

Error Messages/Logs

Steps to Reproduce

Start a session, type a prompt, and wait. It will not take long before it crashes.

Claude Model

Opus

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

Claude Code for VS Code v2.1.89

Platform

Other

Operating System

Ubuntu/Debian Linux

Terminal/Shell

VS Code integrated terminal

Additional Information

See the image attached.