[BUG] Authentication login loop - user cannot authenticate VS Code extension despite valid organization membership

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:

We're experiencing an authentication issue with the Claude Code VS Code extension where a team member cannot successfully log in.

Issue:

User clicks to authenticate in VS Code
Gets redirected to console.anthropic.com and successfully logs in
Returns to VS Code but is immediately prompted to log in again (infinite loop)
User never gets authenticated in the extension
Environment:

Claude Code Extension Version: 2.1.114
VS Code Version: 1.116.0
Operating System: Windows
Account Type: Organization account (Developer role)
What we've verified:

✅ User's email is added to the organization in the Anthropic Console
✅ User has "Developer" role assigned
✅ Email used in VS Code login matches the organization member email exactly
✅ User can successfully log into console.anthropic.com in browser
Troubleshooting steps already attempted:

Signed out and back in using "Claude Code: Sign Out" command
Cleared browser cookies/cache for console.anthropic.com
Restarted VS Code multiple times
Uninstalled and reinstalled the Claude Code extension
Verified VS Code is up to date
Additional context:
The organization admin (me) can authenticate successfully with the same setup. The issue appears to be specific to this team member, despite having identical permissions and verified organization membership.

Is there any additional debugging information we can provide, such as logs from the VS Code Output panel?

What Should Happen?

User should be able to log in

Error Messages/Logs

Steps to Reproduce

Steps are happening in the chat window with the login prompt browser redirect

Claude Model

None

Is this a regression?

No, this never worked

Last Working Version

_No response_

Claude Code Version

2.1.114

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

VS Code integrated terminal

Additional Information

_No response_