[BUG] Windows: Cowork fails to start - “VM service not running” (app hang / stuck)

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?

Desktop app version: Version 1.2278.0 (e5213f)
OS: Windows (Intel x64)
Exact error: “Failed to start Claude’s workspace - VM service not running. The service failed to start.”
What you tried: enabled Virtual Machine Platform, restarted Claude Desktop, restarted PC, reinstalled workspace, and Task Manager shows Claude processes + cowork-svc running but stuck at 0% CPU.
Logs: Event Viewer → Windows Logs → Application shows Event ID 1001 (MoAppHang) for Claude around the time you start Cowork

What Should Happen?

Claude Cowork should work

Error Messages/Logs

Failed to start Claude's workspace
VM service not running. The service failed to start.
Restarting Claude or your computer sometimes resolves this. If it persists, you can reinstall the workspace.

Steps to Reproduce

1. open Claude on windows computer
2. click on cowork
3. start typing a command and eventually I get an error

This has never worked and I've gone through a lot of troubleshooting steps.

Claude Model

Other

Is this a regression?

No, this never worked

Last Working Version

_No response_

Claude Code Version

Version 1.2278.0 (e5213f)

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

Windows Terminal

Additional Information

_No response_