VS Code: Markdown file links in chat responses no longer open files

Description

Markdown file links in Claude's chat responses no longer open files when clicked in the VS Code extension. This was working approximately 1-2 weeks ago.

Environment

• VS Code Claude Code extension (native extension, not CLI)
• Windows 11 Pro
• Workspace path contains spaces (e.g., C:\Users\...)

Steps to Reproduce

1. Open a workspace in VS Code whose path contains spaces
2. Ask Claude to reference files in its response using markdown links
3. Click on the file links in the chat output

Formats Tested

All of the following formats were tested — none open the file:

| Format | Result |
|---|---|
| [file.sql](/ddl/current/file.sql) (relative, URL-encoded spaces) | Clickable but does not open |
| [file.sql](c:/Users/.../ddl/current/file.sql) (absolute, URL-encoded) | Clickable but does not open |
| [file.sql](file:///c:/Users/.../ddl/current/file.sql) (file URI) | Clickable but does not open |
| [file.sql](ddl/current/file.sql) (relative, raw spaces) | Not clickable |
| [file.sql](c:\Users\...\ddl\current\file.sql) (absolute, backslashes) | Not clickable |
| [file.sql](c:/Users/.../ddl/current/file.sql) (absolute, forward slashes) | Not clickable |

Expected Behavior

Clicking a markdown file link in Claude's response should open the referenced file in the VS Code editor, as it did previously.

Notes

• Spaces in the workspace path may be a contributing factor
• This is a regression — the same link formats worked ~1-2 weeks ago