[BUG] Notification hook does not fire in VS Code/Cursor extension when Claude asks for user input

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 Notification hook fires correctly in the terminal CLI when Claude Code needs user input (e.g., asking a question, requesting tool permission), but it does not fire when running Claude Code through the VS Code/Cursor extension UI.

The Stop hook works correctly in both environments.

What Should Happen?

The Notification hook should fire in the extension UI the same way it does in the terminal CLI when Claude is waiting for user input.

Error Messages/Logs

Steps to Reproduce

Add a Notification hook to ~/.claude/settings.json that logs to a file:

"Notification": [{
  "matcher": "",
  "hooks": [{
    "type": "command",
    "command": "bash -c 'echo \"$(date) HOOK=Notification\" >> /tmp/claude-hooks.log'"
  }]
}]

Open Claude Code in the Cursor/VS Code extension
Give it a task that causes it to ask for user input (e.g., a question or tool permission prompt)
Check /tmp/claude-hooks.log — no entry is written

Claude Model

Opus

Is this a regression?

I don't know

Last Working Version

_No response_

Claude Code Version

2.1.100

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

Other

Additional Information

_No response_