[BUG] Claude Desktop - Virtualization Service Not Responding Error Persists After Troubleshooting

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?

Experiencing persistent "virtualization service isn't responding" error in Claude Desktop app. Error continues after multiple computer restarts and standard troubleshooting steps.
System Information:
Operating System: Windows 10 Pro
Claude Desktop Version: 1.3883.0
Processor: Intel/AMD x64
Virtualization enabled in BIOS: Yes
Developer mode enabled: Yes
Steps Taken:
Restarted computer multiple times
Verified Windows virtualization features are enabled
Confirmed developer mode is active
Reinstalled Claude Desktop using MSIX installer (x64/arm64)
Attempted to manually start Claude VM Service via services.msc
Tried "Clear Cache and Restart" and "Reset App Data" options
Expected Behavior:
Claude Desktop should launch without virtualization service errors
Actual Behavior:
Continues to display "virtualization service isn't responding" error message

What Should Happen?

It should connect to Virtual Machine

Error Messages/Logs

Steps to Reproduce

Steps Taken:
Restarted computer multiple times
Verified Windows virtualization features are enabled
Confirmed developer mode is active
Reinstalled Claude Desktop using MSIX installer (x64/arm64)
Attempted to manually start Claude VM Service via services.msc
Tried "Clear Cache and Restart" and "Reset App Data" options

Claude Model

None

Is this a regression?

No, this never worked

Last Working Version

_No response_

Claude Code Version

1.3883.0

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

Windows Terminal

Additional Information

_No response_