[BUG] v2.1.129 fails to activate — hardcoded CI build path in shipped extension

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?

The Claude Code VSCode extension v2.1.129 fails to activate. The sidebar
panel renders empty with the loading spinner and never proceeds. The
extension host logs a TypeError on every activation attempt because a
GitHub Actions runner path appears to be hardcoded into the shipped
extension.js bundle.

Developer: Reload Window does not recover — every reload re-triggers the
same exception. The only way to recover is to manually downgrade to
v2.1.128 via "Install Another Version".

This appears to be a build/release issue rather than a runtime bug, so it
likely affects every user that auto-updates to 2.1.129.

What Should Happen?

The extension should activate cleanly on install/update. Paths to bundled
files (sdk.mjs etc.) should be resolved at runtime relative to the
extension's install directory (context.extensionUri / __dirname), not
baked in as absolute paths from the CI build machine.

Error Messages/Logs

[info]  ExtensionService#_doActivateExtension Anthropic.claude-code, startup: false, activationEvent: 'onView:claudeVSCodeSidebarSecondary'
[error] Activating extension Anthropic.claude-code failed due to an error:
[error] TypeError: The argument 'filename' must be a file URL object, file URL string, or absolute path string. Received 'file:///home/runner/work/claude-cli-internal/claude-cli-internal/build-agent-sdk/sdk.mjs'
        at Object.<anonymous> (c:\Users\<user>\.vscode\extensions\anthropic.claude-code-2.1.129-win32-x64\extension.js:102:5407)

(Same error fires for activationEvent 'onStartupFinished' and on every Reload Window.)

Source log: %APPDATA%\Code\logs\20260506T080524\window1\exthost\exthost.log

Steps to Reproduce

1. Have Claude Code v2.1.128 installed and working in VSCode.
2. Allow VSCode to auto-update the extension to v2.1.129

(or manually install 2.1.129).

1. Open the Claude Code sidebar panel.

→ Panel is empty, only the spinner next to "CLAUDE CODE" is shown.

1. Run "Developer: Reload Window".

→ Same empty panel. Check exthost.log — TypeError above is logged on
every activation attempt.

1. Open Extensions view → Claude Code → gear → "Install Another Version"

→ 2.1.128.
→ Extension activates normally again.

Claude Model

Sonnet (default)

Is this a regression?

Yes, this worked in a previous version

Last Working Version

2.1.128

Claude Code Version

2.1.129

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

PowerShell

Additional Information

Affected install path: \.vscode\extensions\anthropic.claude-code-2.1.129-win32-x64\extension.js (line 102, col 5407)

The hardcoded path in the error — file:///home/runner/work/claude-cli-internal/claude-cli-internal/build-agent-sdk/sdk.mjs — looks like a GitHub Actions runner workspace path. Suggests the build pipeline emitted an absolute path into the bundle instead of a relative resolution.

Workaround for other users hitting this: downgrade to 2.1.128 and disable Auto Update on the extension until a fix ships.