[BUG] Claude Code for VS Code hangs in 2.1.78+

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?

Claude Code VS Code extension stopped working after version 2.1.77. All versions from 2.1.78 onward show a blank/empty webview — no past conversations visible, cannot start new conversations. Rolling back to 2.1.77 immediately resolves the issue.

Environment

OS: Windows + WSL2 (Ubuntu, kernel 6.6.87.2-microsoft-standard-WSL2)
VS Code: build 41dd792b5e
Remote-WSL extension: ms-vscode-remote.remote-wsl-0.104.3
Node.js (in WSL): v22.22.0 (via nvm)
Last working version: 2.1.77
First broken version: 2.1.78
Tested up to: 2.1.96

What Should Happen?

Claude Code extension should load new conversation window and allow me to browse past conversations. If I am logged out, it should present a login prompt.

Error Messages/Logs

Comparing the extension Output logs between 2.1.77 (working) and 2.1.96 (broken):

2.1.77 — webview sends init, extension responds, follow-up messages flow normally (rename_tab, get_claude_state, list_sessions_request, launch_claude, etc.):


[info] Received message from webview: {"type":"request","requestId":"4o4c3jvztqe","request":{"type":"init"}}
[info] Getting authentication status
[info] OAuth tokens found in secure storage
[info] Received message from webview: {"type":"request","requestId":"8idhm1rp4bi","request":{"type":"rename_tab",...}}
[info] Received message from webview: {"type":"request","requestId":"z1yx1ave0ad","request":{"type":"get_claude_state"}}
[info] Received message from webview: {"type":"request","requestId":"v6i0zkra8xa","request":{"type":"list_sessions_request"}}
[info] Launching Claude on channel: qk8en8qc8ug
[info] Spawning Claude with SDK query function...
2.1.96 — webview sends init, and then nothing. No response, no follow-up messages. Extension host eventually becomes unresponsive:


[info] AuthManager initialized
[info] AuthManager initialized          <-- note: initialized twice
[info] Received message from webview: {"type":"request","requestId":"bpopzrae3rd","request":{"type":"init"}}
                                        <-- silence, no further messages
The browser Developer Tools console (from Developer: Open Webview Developer Tools) confirms the remote extension host hangs:


Extension host (Remote) is unresponsive.

Steps to Reproduce

1. Open VS Code connected to WSL via Remote-WSL
2. Install Claude Code >= 2.1.78
3. Open the Claude Code panel — it will be blank
4. Check Output > Claude Code — only the init message appears with no response
5. Downgrade to 2.1.77 — works immediately

Claude Model

None

Is this a regression?

Yes, this worked in a previous version

Last Working Version

2.1.77

Claude Code Version

2.1.81 (Claude Code)

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

WSL (Windows Subsystem for Linux)

Additional Information

_No response_