[BUG] SSHFS/network drive mounts fail directory validation in v2.1.82+ (regression from v2.1.81)

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?

Description

Claude Code extension fails to initialize when the VSCode workspace is opened from an SSHFS-mounted drive letter, showing the error: Working directory "x:\" no longer exists. Please restart Claude from an existing directory.

This is a regression - version 2.1.81 worked correctly with SSHFS mounts, but all versions after (tested through 2.1.101) fail.

Environment

• OS: Windows 11 Enterprise 10.0.22631
• VSCode: Latest (using bundled Node.js)
• Claude Code Working Version: 2.1.81
• Claude Code Broken Versions: 2.1.82 through 2.1.101 (at minimum)
• Mount Tool: sshfs-win (WinFsp backend) mounting remote Linux filesystem via SSH
• Shell: Git Bash (C:\Users\[user]\AppData\Local\Programs\Git\bin\bash.exe)

Steps to Reproduce

1. Mount a remote filesystem via SSHFS to a Windows drive letter (e.g., X:):

``bash
sshfs-win.exe cmd user@remote.host:/path/to/dir X: -o "IdentityFile=C:/path/to/key,uid=-1,gid=-1,umask=000"
``

1. Open VSCode and set workspace to X:\

1. Attempt to use Claude Code (send any message)

Expected Behavior

Claude Code should initialize successfully and execute commands in the X:\ directory (as it did in v2.1.81).

Actual Behavior

Error message appears:

Working directory "x:\" no longer exists. Please restart Claude from an existing directory.

Technical Details

From the Claude Code extension logs (Claude VSCode.log):

[DEBUG] Shell CWD "x:\" no longer exists, recovering to "x:\"
[DEBUG] Bash tool error (1550ms): Working directory "x:\" no longer exists. Please restart Claude from an existing directory.

The error occurs during bash shell initialization when Claude Code validates the working directory. The validation check fails despite:

• Windows acknowledging the drive exists
• PowerShell Test-Path 'X:\' returning True
• Bash commands successfully accessing /x/ files
• VSCode itself opening the workspace without issues

Evidence the Drive is Valid

PowerShell confirms the drive exists:

PS> Test-Path 'X:\'
True

PS> Get-Item 'X:\' | Select-Object PSIsContainer, Exists, FullName
PSIsContainer Exists FullName
------------- ------ --------
         True   True X:\

Bash can access files:

$ ls /x/
CMakeLists.txt  CONTRIBUTING.md  Auxiliary/  Data_Collection/  ...

Timeline

• March 23, 2026: SSHFS mount (Z:) worked successfully with Claude Code v2.1.81
• March 24, 2026: After auto-update, SSHFS mounts stopped working
• April 13, 2026: Confirmed broken on v2.1.101, downgrade to v2.1.81 restored functionality

Workaround

Downgrade to v2.1.81:

1. Extensions → Claude Code → Gear icon → "Install Another Version" → Select 2.1.81
2. Disable auto-update for Claude Code extension

Alternative workaround: Launch Claude Code from a local directory (e.g., C:\Users\[user]) and access SSHFS files using absolute paths like /x/file.txt - this works at runtime but is inconvenient.

Root Cause Hypothesis

Between v2.1.81 and v2.1.82, the directory validation logic became stricter or changed its method of checking directory existence. The new validation appears to use a Node.js filesystem API call that doesn't handle SSHFS/network filesystem mounts reliably, even though the same check works fine at runtime when executing bash commands.

The validation happens specifically during shell initialization before any bash commands are executed, suggesting the issue is in the extension's TypeScript/JavaScript code rather than the shell itself.

Impact

This prevents users from working directly with remote filesystems mounted via SSHFS, which is a common workflow for:

• Remote development on HPC/server systems
• Working with large codebases that must remain on remote storage
• Accessing repositories on remote Linux servers from Windows

Suggested Fix

1. Revert the directory validation logic to whatever was used in v2.1.81
2. Add retry logic with a timeout for network filesystem validation
3. Use the same validation method that works at runtime (e.g., attempt to run pwd in bash) rather than a Node.js sync filesystem check
4. Consider allowing users to skip strict directory validation via a setting for network filesystems

What Should Happen?

Claude Code should initialize successfully and execute commands in the X:\ directory (as it did in v2.1.81).

Error Messages/Logs

Error message appears:

Working directory "x:\" no longer exists. Please restart Claude from an existing directory.

Steps to Reproduce

1. Mount a remote filesystem via SSHFS to a Windows drive letter (e.g., X:):

``bash
sshfs-win.exe cmd user@remote.host:/path/to/dir X: -o "IdentityFile=C:/path/to/key,uid=-1,gid=-1,umask=000"
``

1. Open VSCode and set workspace to X:\

1. Attempt to use Claude Code (send any message)

Claude Model

Sonnet (default)

Is this a regression?

Yes, this worked in a previous version

Last Working Version

v2.1.81

Claude Code Version

v2.1.101

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

Other

Additional Information

Terminal/Shell is Git Bash