[BUG] Claude Code serves Opus 4.6 despite selecting Opus 4.7

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?

Summary
Claude Code consistently serves claude-opus-4-6[1m][1m] regardless of selecting Opus 4.7 in the model picker. Opus 4.7 is accessible via claude.ai web interface on the same account.

Environment
OS: Windows 11 Home 10.0.26200
IDEs tested: Cursor, VS Code (same behavior in both)
Claude Code extension version: 2.1.111
Account: Pro/Max plan (has Opus 4.7 access on claude.ai)

Steps to reproduce
Open Claude Code extension in VS Code or Cursor
Select Opus 4.7 from the model picker
Start a new session
Run /context
Model reported is claude-opus-4-6[1m][1m], not 4.7

What I've tried
Restarting the IDE (both Cursor and VS Code)
Starting fresh sessions
Removing CLAUDE_CODE_DISABLE_ADAPTIVE_THINKING env var from settings

Expected behavior
/context should report Opus 4.7 when selected.

Actual behavior
Opus 4.7 appears in the model picker but the API always serves Opus 4.6.

What Should Happen?

Expected behavior
/context should report Opus 4.7 when selected.

Actual behavior
Opus 4.7 appears in the model picker but the API always serves Opus 4.6.

Error Messages/Logs

Steps to Reproduce

Steps to reproduce
Open Claude Code extension in VS Code or Cursor
Select Opus 4.7 from the model picker
Start a new session
Run /context
Model reported is claude-opus-4-6[1m][1m], not 4.7

Claude Model

Opus

Is this a regression?

No, this never worked

Last Working Version

_No response_

Claude Code Version

2.1.111

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

Cursor

Additional Information

<img width="831" height="441" alt="Image" src="https://github.com/user-attachments/assets/0e47176c-14e7-416c-b7ad-20be9a62e44c" />