[BUG] VS Code extension / WSL bug

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?

Issue:
When using the Claude Code VS Code extension in a WSL2 remote environment (still local machine), assistant responses render as raw JSON instead of formatted chat messages.

Instead of displaying a normal chat response, the UI shows the underlying tool payload:

<img width="1035" height="856" alt="Image" src="https://github.com/user-attachments/assets/e5010d61-6f0c-41c3-9115-93038b30c834" />

Expected:
Assistant responses should render as inline messages in the chat panel, consistent with normal chat behaviour.

Actual:
Responses are displayed as raw JSON/tool input rather than formatted text.

Environment:

• VS Code (latest: 1.115.0)
• Remote - WSL extension
• WSL2 (Linux, Ubuntu distro)
• Claude Code VS Code extension (latest: 2.1.105)

Impact:
This makes the chat UI effectively unusable in WSL environments, as all responses are shown in raw tool / JSON format instead of readable messages.

What Should Happen?

Assistant responses should render as inline messages in the chat panel, consistent with normal chat behaviour.

Error Messages/Logs

Steps to Reproduce

1. Open VS Code connected to WSL2
2. Start a Claude Code session
3. Send any message
4. Observe that the response renders as JSON instead of a formatted message

Claude Model

Other

Is this a regression?

I don't know

Last Working Version

_No response_

Claude Code Version

2.1.100 (Claude Code)

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

VS Code integrated terminal

Additional Information

Additional context:

• The same extension works correctly when used outside of WSL (native Windows environment)
• The issue appears consistently for all messages in WSL
• Other chat extensions in the same VS Code + WSL setup render correctly