[BUG] Cowork VM fails to start on Windows - MSIX path mismatch between VM file location and VM service lookup path

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?

On Windows, Claude Cowork VM fails to start due to a path mismatch between where VM bundle files
are written and where the VM service expects to find them. This affects multiple users across
different hardware on the same MSIX version (1.3883.0.0).

Two distinct failure patterns observed:

Pattern 1 - Fresh MSIX install:
VM files download to MSIX virtualized path:
C:\Users\<user>\AppData\Local\Packages\Claude_pzs8sxrjxfjjc\LocalCache\Roaming\Claude\vm_bundles\claudevm.bundle\

But VM service boots from:
C:\Users\<user>\AppData\Roaming\Claude\vm_bundles\claudevm.bundle\

Error: HCS operation failed: failed to create compute system:
HcsWaitForOperationResult failed with HRESULT 0x80070569

Pattern 2 - Previous Squirrel install upgraded to MSIX:
VM files exist at traditional Roaming path but VM service looks
for rootfs.vhdx at the MSIX Local Packages path.

Error: failed to set VHDX path: VHDX file not found:
C:\Users\<user>\AppData\Local\Packages\Claude_pzs8sxrjxfjjc\LocalCache\Roaming\Claude\vm_bundles\claudevm.bundle\rootfs.vhdx

Symlink workaround is blocked by Claude itself:
Error: path ...vm_bundles is a symlink or junction, refusing to open

• OS: Windows 11, Intune-managed
• Claude version: 1.3883.0.0 (MSIX from claude.ai/download)
• Hardware: Multiple models affected (HP Elite x360 G11, Microsoft Surface)
• Virtual Machine Platform: Enabled
• HCS Services: Running (hns, vmcompute)

What Should Happen?

Cowork VM starts successfully regardless of whether machine
had a previous Squirrel install or is a fresh MSIX install.

Error Messages/Logs

Steps to Reproduce

Steps to Reproduce:

1. Install Claude 1.3883.0.0 MSIX on Windows 11
2. Open Claude and click the Cowork tab
3. Observe VM fails to start

Claude Model

Not sure / Multiple models

Is this a regression?

I don't know

Last Working Version

_No response_

Claude Code Version

Claude 1.3883.0 (93ff6c) 2026-04-21T17:24:01.000Z

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

PowerShell

Additional Information

_No response_