[BUG] Failed to authenticate. API Error: 401 {"type":"error","error":{"type":"authentication_error","message":"Invalid authentication credentials"},"request_id":"xxxxxxxxx"}

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?

Trying to send a prompt through VS Code Claude plugin, I get the Failed to authenticate. API Error: 401 {"type":"error","error":{"type":"authentication_error","message":"Invalid authentication credentials"},"request_id":"xxxxxxxxxxxxxx"} error and a "Authenticate" page opens, but following the link "Authenticate with subscription" triggers an URL that does nothing. All development blocked.

What Should Happen?

Authentication shouldn't be required or the "authenticate" feature should work.

Error Messages/Logs

Steps to Reproduce

Just write a prompt into VS Code throuth the Claude plugin.

Claude Model

None

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

-

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

PowerShell

Additional Information

_No response_