[BUG] Desktop app local mode exits with code 1 immediately

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

Local mode in the Claude desktop app (Mac) exits immediately with code 1 on every prompt, including simple "hello". Cloud mode works fine. The bundled Claude Code binary works correctly when invoked directly from the terminal.

Environment

• Desktop app: v1.2773.0
• Bundled Claude Code: v2.1.92
• CLI Claude Code (/usr/local/bin/claude): v2.1.83
• macOS, Apple Git 2.50.1, Node v24.12.0

Steps to Reproduce

1. Open Claude desktop app on Mac
2. Select a project directory
3. Select Local mode
4. Type "hello" and send
5. Immediately get: Claude Code process exited with code 1

Relevant Logs (~/Library/Logs/Claude/main.log)

[CCD] Passing 1 plugin(s) to SDK (skills: 1, remote: 0, local: 0)
Using Claude Code binary at: .../claude-code/2.1.92/claude.app/Contents/MacOS/claude
Session local_67e9fcdb... query error: Claude Code process exited with code 1
[CCD CycleHealth] unhealthy cycle (0s, hadFirstResponse=false, reason=no_response)

What Works

• claude "hello" from terminal (CLI v2.1.83) — works
• Bundled binary directly from terminal — works
• Cloud mode in the desktop app — works

Diagnosis

Crash occurs the instant the desktop app spawns the binary — before any hooks or tools execute. The binary is functional standalone. The issue appears to be in how the SDK layer invokes the binary (possibly plugin/flag arguments).

Consistently reproducible across multiple attempts and app restarts.

What Should Happen?

Claude app should operate correctly

Error Messages/Logs

2026-04-16 08:38:31 [info] [CCD] LocalSessions.getDefaultPermissionMode: cwd=/Users/andrewmackenzie/Desktop/AfterKey
2026-04-16 08:38:31 [info] LocalSessions.checkGhAvailable: cwd=/Users/andrewmackenzie/Desktop/AfterKey
2026-04-16 08:38:31 [info] [CCD] LocalSessions.setFocusedSession: sessionId=null
2026-04-16 08:38:36 [info] LocalSessions.checkTrust: cwd=/Users/andrewmackenzie/Desktop/AfterKey
2026-04-16 08:38:36 [info] LocalSessions.start:
2026-04-16 08:38:36 [info] Starting local session local_67e9fcdb-c81b-46bb-8ff0-ad6ce91dc4e6 in /Users/andrewmackenzie/Desktop/AfterKey
2026-04-16 08:38:36 [info] [CCD] Using skills plugin at: /Users/andrewmackenzie/Library/Application Support/Claude/local-agent-mode-sessions/skills-plugin/5fefc149-fed9-4cb2-830d-3b0a89fd9f23/40e6aba5-f204-476d-bfb9-bff617fb7ee0
2026-04-16 08:38:36 [info] [CCD] Passing 1 plugin(s) to SDK (skills: 1, remote: 0, local: 0)
2026-04-16 08:38:36 [info] Using Claude Code binary at: /Users/andrewmackenzie/Library/Application Support/Claude/claude-code/2.1.92/claude.app/Contents/MacOS/claude
2026-04-16 08:38:36 [error] Session local_67e9fcdb-c81b-46bb-8ff0-ad6ce91dc4e6 query error: Claude Code process exited with code 1
2026-04-16 08:38:36 [info] [CCD CycleHealth] unhealthy cycle for local_67e9fcdb-c81b-46bb-8ff0-ad6ce91dc4e6 (0s, hadFirstResponse=false, reason=no_response)

Steps to Reproduce

Open new claude session using local

Claude Model

None

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

Claude 1.2773.0 (884b37) 2026-04-15T14:32:09.000Z

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

Terminal.app (macOS)

Additional Information

_No response_