[BUG] Unable to connect to VS code IDE (windows npm native)

Environment

• Platform (select one):
• [ ] Claude pro account
• Claude CLI version: 1.0.62 (Claude Code)
• Operating System: Windows 11
• Terminal: VS CODE windows powershell

Bug Description

Unable to connect to IDE from within VS Code terminal

Steps to Reproduce

1. Install claude code through npm
2. Launch VS Code and run claude
3. VS Code extention installs
4. Execute /ide

Expected Behavior

Claude code should connect fine on VS Code

Actual Behavior

Unable to connect to IDE

Select IDE                                                                     │
│  Connect to an IDE for integrated development features.                         │
│                                                                                 │
│  No available IDEs detected. Make sure your IDE has the Claude Code extension   │
│  or plugin installed and is running. 

Additional Context

VS Code on same working directory where Claude was launched from
Extension up to date
External windows poweshell terminal connects to IDE fine!
Claude doctor

Claude CLI Diagnostic
 Currently running: npm-global (1.0.62)
 Path: C:\Program Files\nodejs\node.exe
 Invoked: C:\Users\myuser\AppData\Roaming\npm\node_modules\@anthropic-ai\claude-code\cli.js
 Config install method: global
 Auto-updates enabled: true
 Update permissions: Yes

Claude status

Claude Code Status v1.0.62

  L Session ID: 48df5595-1ab5-4d10-9f4f-621ccf8213ce

 Working Directory 
  L C:\Users\myuser\some_folder
 IDE Integration • /config
 ✔  Installed VS Code extension

 Account • /login
  L Login Method: Claude Pro Account
  L Organization: my user's Organization
  L Email: my email

 Memory • /memory
  L project: CLAUDE.md

 Model • /model
  L Sonnet Sonnet 4 for daily use