[BUG] Regression in Claude Code VS Extension v2.1.129: chat panel empty, no Output channel registered (Windows)

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?

VS Code on Windows, extension 2.1.129 → blank CLAUDE CODE panel, "Claude Code" channel missing from Output, CLI authentication from terminal OK. Downgrading to 2.1.128 fixes this. I asked Claude (the chat via App) for clarification and he told me to try installing the previous version and then everything worked.

What Should Happen?

You should have seen the chat panel with the usual controls at the bottom (request field and so on) but at the top next to the tab there is only CLAUDE and a blue animated glyph indicating a refresh attempt.

And, yes, I have a Pro contract and authentication works everywhere and with the previous version plugin.

Error Messages/Logs

Steps to Reproduce

Launch VS Code and select CLAUDE CODE Plugin Tab

Claude Model

Not sure / Multiple models

Is this a regression?

Yes, this worked in a previous version

Last Working Version

2.1.128

Claude Code Version

1.6259.1 (5095e7)

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

VS Code integrated terminal

Additional Information

<img width="1120" height="565" alt="Image" src="https://github.com/user-attachments/assets/807a4edc-c971-4b50-b03f-1e122b041b5a" />