[Bug] Model selection fails when switching to Opus 4.7 via /mcp command in VSCode plugin

Bug Description
I am using VSCode plugin for claude with version 2.1.132. My org has set the default model for us to be sonnet 4.6 when we open up claude. This does work. But when I click on the "Default (recommended)" model via "/mcp" in the plugin (which says Opus 4.7 with 1M context), the model does not switch and stays at sonnet 4.6. I confirmed by checking "/context" and also asking the agent. Also if I use haiku first and then select the opus 4.7 model, it also says it switches to sonnet 4.6. This is making the VSCode plugin unusable since I cannot select and use Opus 4.7 when needed.

Environment Info

• Platform: darwin
• Terminal: tmux
• Version: 2.1.136
• Feedback ID: 34629c8d-9437-4f25-8baf-ec93129ec9f3

Errors

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