[BUG] Local sessions in Code tab don't respond + /desktop fails from VS Code terminal

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?

Bug Description

Two related bugs in Claude Desktop app (macOS, Pro plan):

Bug 1: Local sessions in Code tab frozen

• Open Claude Desktop app → Code tab
• Create New session with Local environment
• Type any message and send
• No response appears, session is completely frozen
• This happens with EVERY new local session

Bug 2: /desktop command fails from VS Code terminal

• Run claude in VS Code integrated terminal
• Type /desktop
• Terminal shows "Opening in Claude Desktop..."
• Desktop app shows error: "Couldn't open session: CLI session transcript not found: [UUID]"

What works

• Cloud/Default sessions work (but require GitHub repo)
• Terminal claude command works fine
• VS Code terminal runs Claude Code fine

Environment

• macOS
• Claude Desktop app: latest version
• Claude Code: v2.1.94
• Plan: Pro
• No GitHub repo (local files only)

Expected behavior

Local sessions should respond to messages.
/desktop should open session in Desktop app from any terminal.

What Should Happen?

fix

Error Messages/Logs

Steps to Reproduce

Steps to reproduce Bug 1:

1. Open Claude Desktop app
2. Click "Code" tab at the top
3. Click "New session"
4. Make sure environment is "Local" (bottom right)
5. Type "Hello" in the Reply field
6. Press Enter/Send
7. Expected: Claude responds
8. Actual: No response, session frozen

Steps to reproduce Bug 2:

1. Open VS Code
2. Open integrated terminal (Ctrl+`)
3. Run: cd ~/Documents/Checkbox/CLAUDE/ghost-themes/checkbox-theme && claude
4. Wait for Claude Code to fully load
5. Type: /desktop
6. Terminal shows "Opening in Claude Desktop..."
7. Expected: New session opens in Desktop app
8. Actual: Error popup "Couldn't open session: CLI session transcript not found: [UUID]"

Claude Model

None

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

2.1.94

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

VS Code integrated terminal

Additional Information

_No response_