[BUG] Claude Code process exited with code 1 - Desktop app only, terminal works fine

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?

Body:
Environment

Device: MacBook Air (Apple Silicon / arm64)
OS: macOS (zsh)
Claude desktop app: freshly installed
Claude Code version: 2.1.110
Account: Claude Pro

Problem
Every time I enter a command in the Claude Code feature inside the desktop app, I get this error and nothing executes:

Claude Code process exited with code 1

The same commands work fine when running claude from the terminal.
What I have tried

Uninstalled and reinstalled the desktop app → no improvement
Logged out and back in → no improvement
Ran claude install → version 2.1.110 confirmed working in terminal
Deleted old binary at /usr/local/bin/claude with sudo rm
Moved app to Applications folder (was launching from read-only volume)
Ran claude doctor → two installations found, removed npm-global version with sudo npm -g uninstall @anthropic-ai/claude-code
Added Claude to Full Disk Access in System Settings → no improvement
Deleted ~/Library/Application Support/Claude and reinstalled → no improvement
Checked env | grep ANTHROPIC → no API key set
Checked Console.app for Claude-related errors → no messages found

Current state

Terminal: claude works correctly
Desktop app: every command results in code 1, nothing executes
This happens in all project folders

What Should Happen?

Commands entered in the Claude desktop app's Claude Code feature should execute normally, just like they do in the terminal.

Error Messages/Logs

Claude Code process exited with code 1

Steps to Reproduce

1. Open Claude desktop app
2. Select any project folder
3. Enter any command in the Claude Code input field
4. Claude Code process exits with code 1 immediately

Claude Model

Sonnet (default)

Is this a regression?

No, this never worked

Last Working Version

_No response_

Claude Code Version

2.1.110 (Claude Code)

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

Terminal.app (macOS)

Additional Information

_No response_