[BUG] VSCode extension fails on first query after restart with "model may not exist" error

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'm using the latest Claude Code VSCode extension with Anthropic Enterprise subscription.
I'm getting an error message indicating the model I've selected doesn't exist, but the model in the error message is not even in my settings.

settings.json contains:

• "claudeCode.selectedModel": "claude-opus-4-6",

Error message shows:

• claude-opus-4-6@default

Workaround: Selecting a new model after restart resolves it for the session

What Should Happen?

The extension should just use the last selected model.

Error Messages/Logs

There's an issue with the selected model (claude-opus-4-6@default). It may not exist or you may not have access to it. Run --model to pick a different model.

Steps to Reproduce

1. Set claudeCode.selectedModel to claude-opus-4-6 (or any model) in C:/Users/<User>/AppData/Roaming/Code/User/settings.json via the /Switch model... command in the Claude Code extension.
2. Restart extension host
3. Send any query to Claude

Claude Model

Opus

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

2.1.90

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

Other

Additional Information

_No response_