[BUG] Desktop 1.3036.0 — Claude Code & Cowork crash with exit code 1 mid-turn

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?

After updating Claude Desktop to version 1.3036.0 (cf521c), both Claude Code and Cowork sessions crash with "Something went wrong — Claude Code process exited with code 1" on every turn. The error appears mid-conversation after Claude has already started streaming a response — it is not a startup crash.

Chat mode is unaffected. Only Code and Cowork sessions are broken.

What Should Happen?

The turn completes normally and Claude responds as it did before the update.

Error Messages/Logs

Steps to Reproduce

1. Open Claude Desktop on version 1.3036.0
2. Start a new Claude Code or Cowork session in any project directory
3. Send any non-trivial prompt (e.g. a code-writing task that involves reading files)
4. Claude begins streaming a response, then the turn terminates with: Claude Code process exited with code 1 — You can restart the conversation from an earlier message.

100% reproducible across multiple new sessions.

Claude Model

None

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

Claude 1.3036.0

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

Terminal.app (macOS)

Additional Information

Actual Behavior

The process dies mid-turn. Response is partially visible but marked as failed. "Try again" reproduces the crash. "Go back" + a shorter prompt sometimes works but is not reliable.

What I've Already Ruled Out

• Updating to the latest Desktop version (1.3036.0 is today's build — the update is what introduced the issue)
• Restarting the app (full Cmd+Q quit and relaunch)
• Anthropic-side outage (persists after the April 15 outage was marked resolved)
• The prompt itself — happens on varied, unrelated prompts
• Project-specific config — happens across different project directories

Additional Context

• Issue appears related to the broader pattern of exit-code-1 crashes in recent Desktop builds
• Claude Code CLI in Terminal works fine with the same auth — only the Desktop app's embedded binary integration is affected
• Screenshot attached showing the error banner

<img width="424" height="312" alt="Image" src="https://github.com/user-attachments/assets/0dd36d0e-a229-4ce2-ab1d-62cd6e9ec992" />