[BUG] Silent crash with update of claude extension in VS CODE from Version 2.1.118

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?

In VS Code on a PC running on Windows 10 1803, the new version of claude extension cause a silent crash with message "Error: Claude Code process exited with code 3221225785"
By installing specific version, I fix the bug for now
The last good version is Identifier anthropic.claude-code Version 2.1.117
The first bad version is Identifier anthropic.claude-code Version 2.1.118

What Should Happen?

Open a new session with claude extension for VSCODE

Error Messages/Logs

"Error: Claude Code process exited with code 3221225785"

Steps to Reproduce

Open a session with version > Version 2.1.117 in VS CODE on a PC running with Windows 10 1803

Claude Model

None

Is this a regression?

Yes, this worked in a previous version

Last Working Version

anthropic.claude-code Version 2.1.117

Claude Code Version

anthropic.claude-code Version 2.1.119

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

VS Code integrated terminal

Additional Information

<img width="1284" height="920" alt="Image" src="https://github.com/user-attachments/assets/7f8971bb-e91c-4438-8ec6-88397c88bf17" />