[BUG] VSCode extension cannot access workspace files ("No files found") – not related to #8451

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?

The VSCode extension cannot access any files or folders in the current workspace.

@file does not work
The extension returns: "No files found"
No files from the project can be referenced or attached

Important clarification (not a duplicate)

This issue was previously closed as a duplicate of #8451, but the behavior is fundamentally different.

#8451 describes context synchronization issues:
Missing <ide_selection>
Stale <ide_opened_file>
Context is still partially available but inconsistent
This issue describes a complete workspace access failure:
No files are accessible
@file does not resolve anything
The system reports "No files found"

These affect different layers:

#8451 → IDE context synchronization
This issue → Workspace resolution / indexing failure

What Should Happen?

@file should resolve and attach files from the workspace

Error Messages/Logs

No files found

Steps to Reproduce

Steps to Reproduce
Open a project in VSCode
Reload extensions
Run /init
Try to reference any file using @

Claude Model

Not sure / Multiple models

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

2.1.100

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

VS Code integrated terminal

Additional Information

This issue appears to be a regression in 2.x versions.

There are reports in #8451 where context is inconsistent but still partially working. In this case, there is no access at all, which suggests a deeper failure in workspace detection or indexing.