IDE Connection Failure: Workspace Mismatch in VSCode

Bug Description
Claude can't connect to ide. I ran Claude from the nx project folder and opened the project folder from VSC File-menu. This has started happening recently. I get this error and Claude can't see my cursor/selection:\
\
Select IDE │
│ Connect to an IDE for integrated development │
│ features. │
│ │
│ No available IDEs detected. Make sure your IDE │
│ has the Claude Code extension or plugin │
│ installed and is running. │
│ │
│ Found 1 other running IDE(s). However, their │
│ workspace/project directories do not match the │
│ current cwd. │
│ │
│ • Visual Studio Code: │
│ /Users/my_home_folder/coding/project

Environment Info

• Platform: darwin
• Terminal: vscode
• Version: 1.0.77
• Feedback ID: 3e98d335-35df-427e-ab1f-c1df0b149c94

Errors

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