[BUG] After pasting the API Token ID - The Visual Studio code Claude extension - contnue button not working. Nothing happens , no response

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?

I have installed the claude code extension in Visual Studio code the latest version and then I am manually copy pasting my API token ID and then clicking on Continue button , however nothing happens and I always get the following error in the logs :
2026-04-21 14:49:25.410 [error] Error processing client request: Error: Invalid state parameter
2026-04-21 14:49:25.414 [info] Received message from webview: {"type":"interrupt_claude","channelId":"x6qkjs551f"}
2026-04-21 14:49:25.414 [warning] Channel not found: x6qkjs551f

Not sure what to do as I am unable to use the claude code Anthropic console in Visual studio code

What Should Happen?

Claude code Window should open in Visual studio code

Error Messages/Logs

2026-04-21 14:49:25.410 [error] Error processing client request: Error: Invalid state parameter
2026-04-21 14:49:25.414 [info] Received message from webview: {"type":"interrupt_claude","channelId":"x6qkjs551f"}
2026-04-21 14:49:25.414 [warning] Channel not found: x6qkjs551f

Steps to Reproduce

I have installed the claude code extension in Visual Studio code the latest version and then I am manually copy pasting my API token ID and then clicking on Continue button , however nothing happens and I always get the following error in the logs :
2026-04-21 14:49:25.410 [error] Error processing client request: Error: Invalid state parameter
2026-04-21 14:49:25.414 [info] Received message from webview: {"type":"interrupt_claude","channelId":"x6qkjs551f"}
2026-04-21 14:49:25.414 [warning] Channel not found: x6qkjs551f

Not sure what to do as I am unable to use the claude code Anthropic console in Visual studio code

Claude Model

None

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

2.1.116

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

VS Code integrated terminal

Additional Information

_No response_