"command Claude vscode editor.Open last not found" error after VS Code update - Extension not activating

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?

Hey team,
This morning I opened VS Code and Claude Code stopped working. Every time I click on it, I get this error:
command Claude vscode editor.Open last not found
The extension panel also shows "not yet activated" and just won't load. I'm on Windows with Node.js v24. Everything was working perfectly fine yesterday, and the only thing that changed is VS Code auto-updated itself overnight.
I tried disabling and re-enabling the extension, reloading the window, and fully closing and reopening VS Code — nothing worked.
My chat history is still in the .claude folder so that's not the issue. The extension just won't activate at all after the update.
Hope you can look into this. Thanks!

What Should Happen?

Claude Code extension should activate normally and open as usual.

Error Messages/Logs

Steps to Reproduce

Open VS Code after today's auto-update
Click on Claude Code extension
Error appears: "command Claude vscode editor.Open last not found"
Extension panel shows "not yet activated"

Claude Model

None

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

2.1.129

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

Terminal.app (macOS)

Additional Information

_No response_