VS Code extension session corrupted when Claude Code reads invalid image file

Bug Description

Downloaded image via curl, Claude Code attempted to Read the file, received API Error: 400 - Could not process image. After this point, every subsequent message in the session returned the same error. Session became permanently unusable.

Steps to Reproduce

1. Run curl to download an image file (e.g. curl -sL "https://..." -o cover.jpg)
2. Claude Code (VS Code extension) reads the file automatically via the Read tool
3. API returns Could not process image
4. All subsequent messages in the session fail with the same error

Expected Behavior

Error shown once for the invalid image read, session continues normally with subsequent messages.

Actual Behavior

Session permanently corrupted — no recovery possible. Every message after the initial error returns the same Could not process image error. The only fix is opening a new session, losing all conversation history and context.

Environment

• OS: Windows 10 Pro 10.0.19045
• Editor: VS Code extension
• Shell: PowerShell / bash
• Node.js: v22