VS Code Terminal Integration Broken for Claude Code Extension

Bug Description
I used to be able to run VS Code, with the Claude Code extenions running, and run Cluade Code in powershell and it connected fine. Now, when I run Powershell under VS Code Terminal Claude Code is no longer able to understatnd it is connect to VS Code. I don't know what regressed here and/or what I may need to do to fix this, but I would love to have that back working.\
\
Note: I have confirmted that the VS Code extension is runnng.\
I am in a vS terminal session.\
This is what used to work and does not now.\

Environment Info

• Platform: win32
• Terminal: vscode
• Version: 1.0.61
• Feedback ID: 19919c98-4125-4e67-a8b9-dc023b989ce9

Errors

[{"error":"Error: Language not supported while highlighting code, falling back to markdown: \n    at QX (file:///C:/Users/direc/AppData/Roaming/npm/node_modules/@anthropic-ai/claude-code/cli.js:1491:1184)\n    at file:///C:/Users/direc/AppData/Roaming/npm/node_modules/@anthropic-ai/claude-code/cli.js:1491:2172\n    at Array.map (<anonymous>)\n    at QX (file:///C:/Users/direc/AppData/Roaming/npm/node_modules/@anthropic-ai/claude-code/cli.js:1491:2143)\n    at file:///C:/Users/direc/AppData/Roaming/npm/node_modules/@anthropic-ai/claude-code/cli.js:1491:2059\n    at Array.map (<anonymous>)\n    at QX (file:///C:/Users/direc/AppData/Roaming/npm/node_modules/@anthropic-ai/claude-code/cli.js:1491:2048)\n    at file:///C:/Users/direc/AppData/Roaming/npm/node_modules/@anthropic-ai/claude-code/cli.js:1491:912\n    at Array.map (<anonymous>)\n    at DX (file:///C:/Users/direc/AppData/Roaming/npm/node_modules/@anthropic-ai/claude-code/cli.js:1491:903)","timestamp":"2025-07-27T03:21:44.611Z"},{"error":"Error: Language not supported while highlighting code, falling back to markdown: \n    at QX (file:///C:/Users/direc/AppData/Roaming/npm/node_modules/@anthropic-ai/claude-code/cli.js:1491:1184)\n    at file:///C:/Users/direc/AppData/Roaming/npm/node_modules/@anthropic-ai/claude-code/cli.js:1491:2172\n    at Array.map (<anonymous>)\n    at QX (file:///C:/Users/direc/AppData/Roaming/npm/node_modules/@anthropic-ai/claude-code/cli.js:1491:2143)\n    at file:///C:/Users/direc/AppData/Roaming/npm/node_modules/@anthropic-ai/claude-code/cli.js:1491:2059\n    at Array.map (<anonymous>)\n    at QX (file:///C:/Users/direc/AppData/Roaming/npm/node_modules/@anthropic-ai/claude-code/cli.js:1491:2048)\n    at file:///C:/Users/direc/AppData/Roaming/npm/node_modules/@anthropic-ai/claude-code/cli.js:1491:912\n    at Array.map (<anonymous>)\n    at DX (file:///C:/Users/direc/AppData/Roaming/npm/node_modules/@anthropic-ai/claude-code/cli.js:1491:903)","timestamp":"2025-07-27T11:41:43.138Z"},{"error":"Error: Language not supported while highlighting code, falling back to markdown: \n    at QX (file:///C:/Users/direc/AppData/Roaming/npm/node_modules/@anthropic-ai/claude-code/cli.js:1491:1184)\n    at file:///C:/Users/direc/AppData/Roaming/npm/node_modules/@anthropic-ai/claude-code/cli.js:1491:2172\n    at Array.map (<anonymous>)\n    at QX (file:///C:/Users/direc/AppData/Roaming/npm/node_modules/@anthropic-ai/claude-code/cli.js:1491:2143)\n    at file:///C:/Users/direc/AppData/Roaming/npm/node_modules/@anthropic-ai/claude-code/cli.js:1491:2059\n    at Array.map (<anonymous>)\n    at QX (file:///C:/Users/direc/AppData/Roaming/npm/node_modules/@anthropic-ai/claude-code/cli.js:1491:2048)\n    at file:///C:/Users/direc/AppData/Roaming/npm/node_modules/@anthropic-ai/claude-code/cli.js:1491:912\n    at Array.map (<anonymous>)\n    at DX (file:///C:/Users/direc/AppData/Roaming/npm/node_modules/@anthropic-ai/claude-code/cli.js:1491:903)","timestamp":"2025-07-27T11:42:24.814Z"},{"error":"Error: Request was aborted.\n    at F71._createMessage (file:///C:/Users/direc/AppData/Roaming/npm/node_modules/@anthropic-ai/claude-code/cli.js:1325:7955)\n    at processTicksAndRejections (node:internal/process/task_queues:105:5)\n    at runNextTicks (node:internal/process/task_queues:69:3)\n    at process.processTimers (node:internal/timers:520:9)","timestamp":"2025-07-27T11:42:44.819Z"},{"error":"Error: Diagnostics file path mismatch: expected C:\\Users\\direc\\OneDrive\\Documents\\Electro_jam\\SB2025\\EJProtocol\\README.md, got file://c:\\users\\direc\\onedrive\\documents\\electro_jam\\sb2025\\ejprotocol\\readme.md/)\n    at rw.beforeFileEdited (file:///C:/Users/direc/AppData/Roaming/npm/node_modules/@anthropic-ai/claude-code/cli.js:1385:13886)\n    at process.processTicksAndRejections (node:internal/process/task_queues:105:5)\n    at async Object.call (file:///C:/Users/direc/AppData/Roaming/npm/node_modules/@anthropic-ai/claude-code/cli.js:2370:538)\n    at async KX8 (file:///C:/Users/direc/AppData/Roaming/npm/node_modules/@anthropic-ai/claude-code/cli.js:2428:10150)\n    at async hb1 (file:///C:/Users/direc/AppData/Roaming/npm/node_modules/@anthropic-ai/claude-code/cli.js:2428:6569)\n   

Note: Error logs were truncated.