[BUG] VS Code extension: chat scrollback not restored after window restart (regression)

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?

Summary

After restarting VS Code, the Claude Code chat pane no longer shows the prior session's scrollback. The underlying JSONL transcript is intact on disk under ~/.claude/projects/<project>/, but the extension does not rehydrate the chat view from it. This used to work — reopening the window preserved the visible conversation history.

Environment

• OS: macOS (Darwin 25.4.0)
• Editor: VS Code with Claude Code extension (2.1.120)
• Model: Claude Opus 4.7 (1M context)

Steps to reproduce

1. Have an active Claude Code session in VS Code with substantial chat history (in my case, post-/compact).
2. Quit and reopen VS Code.
3. Open the Claude Code panel for the same project.

Expected

Chat pane shows the prior conversation, as it did in earlier versions of the extension.

Actual

Chat pane comes up without the prior scrollback. The session state itself is preserved (memory loads, the compaction summary is in context), but the visible history is gone from the UI. The only way to read earlier turns is to open the JSONL transcript directly — which is not a usable substitute for scrollback.

Impact

Scrollback is how users verify what was discussed, copy prior output, and orient themselves after a break. Losing it on every window restart is a significant UX regression. Reading a raw JSONL file is not an acceptable workaround for an interactive chat UI.

Notes

• Transcript file is present and well-formed; this appears to be purely a UI-rehydration issue, not data loss.
• Happened immediately after a /compact + restart, but I don't believe compaction is the trigger — the extension simply isn't replaying the transcript into the pane on open.

What Should Happen?

The chat pane of a resumed session should include all scroll back history, just like it used to.

Error Messages/Logs

Steps to Reproduce

1. Have an active Claude Code session in VS Code with substantial chat history (in my case, post-/compact).
2. Quit and reopen VS Code.
3. Open the Claude Code panel for the same project.

Claude Model

Opus

Is this a regression?

Yes, this worked in a previous version

Last Working Version

I have no idea.

Claude Code Version

2.1.120

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

Terminal.app (macOS)

Additional Information

_No response_